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– Nomura (based on Reuters)
Pair's Outlook
The Australian Dollar plunged against the US counterpart on Friday, with the four-month up-trend being put to the test. Moreover, the AUD/USD currency opened with a bearish gap today, which puts the up-trend under the risk of getting broken. A failure for the Aussie to regain the bullish momentum would imply that the overall bearish trend is likely to continue. The closest obstacle for the pair is the 20-day SMA, which is required to be pierced in order for the trend-line to be preserved. Even though technical indicators suggest the Aussie is to outperform the Buck, we should not rule out the possibility of a decline towards 0.7565, where the weekly S1 and the monthly PP rest.
Traders' Sentiment
Today 65% of all open positions are short (previously 64%), while 56% of all pending orders are to sell the Aussie, compared to 28% on Friday.
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