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– UOB Group (based on FXStreet)
Pair's Outlook
The Aussie's behaviour fell in line with expectations on Tuesday, as it outperformed its US counterpart and stabilised above the immediate resistance level. Technical studies keep giving bearish signals, but risk-on mood returned to the markets, boosting the commodity currency. Consequently, the AUD/USD pair has the potential to reach the 0.73 mark, where the weekly R2, the monthly PP and the 20-day SMA are located at, forming strong resistance. On the other hand, a lot depends on today's FOMC Meeting Minutes, as their dovish tone could strengthen the US Dollar, causing the pair to fall back under 0.72, as technical indicators suggest.
Traders' Sentiment
Both bearish traders' sentiment and the portion of sell orders remain unchanged today, taking up 59% and 54% of the market, respectively.
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