© Dukascopy Bank SA
– Westpac (based on The Business Times)
Pair's Outlook
The Aussie's positive development yesterday somewhat caused the ascending channel's resistance line to be breached, but the 100 and the 200-day SMAs managed to contain the rally. The AUD/USD currency pair open within the channel's borders again today, with the upper trend-line still being reinforced by the mentioned SMAs, meaning it will be difficult for the pair to post more gains, despite technical indicators retaining bullish signals. We should not rule out the possibility of bears taking up, as that would imply the preservation of the channel pattern. A retest of the 0.7420-0.74 area is required to reconfirm the support line of the channel.
Traders' Sentiment
Market sentiment remains bearish, with 54% of all open positions being short, whereas 65% of all pending orders are to sell the Aussie.
© Dukascopy Bank SA