© Dukascopy Bank SA
- Nordea (based on CNBC)
Pair's Outlook
Not only did the Aussie erase the bearish gap yesterday, but also pierced the seven-month resistance trend-line. Even though technical indicators are now giving mixed signals, we expect the AUD/USD currency pair to retain its bullish momentum and continue edging higher. The RBA minutes provided impetus for upside movement, but gains might still be limited around 0.7790, where the Bollinger band coincides with the weekly R1, providing relatively strong resistance. In case supply at this point fails, the Australian Dollar might then reach the second target around 0.7875, represented by the weekly R2 and the monthly R1.
Traders' Sentiment
Market sentiment remains bullish, but at 59% (previously 73%). Buy orders are now outnumbering the sell ones by only 2% points.
© Dukascopy Bank SA