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– Commonwealth Bank (based on The Business Times)
Pair's Outlook
On Monday the Australian Dollar outperformed its US counterpart, completely erasing Friday's losses. The pair approached the weekly R1 level, which is representing immediate resistance and now is also reinforced by the upper Bollinger band. Consequently, the Aussie is expected to turn back and partially negate yesterday's gains. Technical indicators support this outlook, as they keep giving bearish signals. The cluster around 0.7280 keeps acting as the closest support, formed by the 20-day SMA, the weekly and the monthly PP, which should limit the losses if bears managed to push the exchange rate below 0.73.
Traders' Sentiment
Market sentiment barely changed over the day, as 54% of all open positions are now short (previously 55%). At the same time, the share of sell orders inched down from 60 to 58%.
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