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– Commonwealth Bank (based on The Business Times)
Pair's Outlook
The AUD/USD currency pair returned within the channel's borders on Friday, with the monthly pivot point and the 20-day SMA limiting the losses. These levels keep providing immediate support today, while also being reinforced by the weekly PP, making it difficult for the Aussie to edge lower again. Another bullish development is anticipated, with the channel's resistance line unlikely to be an obstacle, but the second target, namely the weekly R1, is expected to remain out of reach today. In the meantime, technical indicators are unable to confirm the possibility of the positive outcome, as they retain bearish signals. The base case scenario, however, is a surge towards 0.7340.
Traders' Sentiment
Today 55% of all open positions are short (previously 53%), whereas 60% of all pending orders are to sell the Aussie (up from 45%).
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