© Dukascopy Bank SA
- Westpac (based on CNBC)
Pair's Outlook
There were no surprises in the AUD/USD currency pair's performance on Monday, as the sell-off stopped in front of the immediate support cluster. The same cluster, namely the weekly PP and the 20-day SMA around 0.7240, continues to provide support today as well. Technical studies no longer give bearish signals; therefore, a rebound is the base case scenario. The area to hold the gains, however, lies out of reach circa 0.7335, represented by the Bollinger band, the weekly and the monthly R1s. Meanwhile, we expect a surge no further than the 0.7310 mark.
Traders' Sentiment
Market sentiment remains bullish, but at 61%, compared to 67% on Monday. The share of purchase orders edged up from 45 to 51%.
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