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- Goldman Sachs (based on Reuters)
Pair's Outlook
The Australian Dollar suffered a rather serious loss against the American Dollar yesterday, amid a decline in commodity prices. The Aussie, however, now has the potential to recover and erase this week's losses if sufficient impetus is provided to pierce the immediate resistance around 0.7815, represented by the weekly R1 and the Bollinger band. In case this level is breached, the second target will be the area around 0.7880, namely the weekly R2 and the monthly S1. Furthermore, technical indicators are now giving bullish signals, bolstering the possibility of the positive outcome.
Traders' Sentiment
Bulls and bears broke out of the equilibrium, with long positions now outnumbering the short ones by only 2% points. Meanwhile, the percentage of buy orders surged from 44 to 72%.
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