© Dukascopy Bank SA
— UOB Group (based on FXStreet)
Pair's Outlook
Upbeat US fundamental data on Thursday allowed the American Dollar to take the upper hand and outperform the Aussie. As a result, the Australian currency erased most of Wednesday's gains, as the nearest support area was completely ignored. Nevertheless, technical studies are still giving bullish signals, but another leg down of approximately 40 pips is also possible. A bearish development could cause the rising wedge's support line to be put to the test again, but the 20 and the 55-day SMAs are required to be pierced first. At the moment the pair lacks the pressure to breach the SMAs, thus, the base case scenario remains in favour of a rally.
Traders' Sentiment
There are 72% of traders holding short positions today (previously 71%), while 59% of all pending orders are to acquire the Aussie.
© Dukascopy Bank SA