"Disappointing data further weighed on the AUD/USD. The pair extended losses to 0.7335. The pullback toward the 0.7300/0.7290 is underway. Offers are eyed at 0.7455 and 0.7510 (minor 23.6% retrace and major 38.2% retrace on March – May decline).
— London Capital Group (based on Investing.com)
Pair's outlook
Strong downside pressures have pushed the Aussie through the bottom channel line and the lower Bollinger band at 0.7375 and 0.7364, respectively. The former was tested for three consecutive days prior to breaching the line today. This indicates that the downward-sloping channel mentioned on Monday may not be strong enough anymore to confine the pair's movement. Taking into account the bearish signals in this trading session, a close in the 0.7364/43 area should be expected. In addition, it is likely that the Aussie makes a U-turn in the subsequent trading days, setting the monthly S1 at 0.7407 for a test.
Traders' sentiment
Market sentiment has decreased slightly, as 53% of traders are holding long positions. In addition, 57% of pending orders are to buy the Aussie.
| Sentiment | Today | Yesterday | 5 days ago | |
| Positions | 6% | 14% | 8% | |
| Orders | 14% | -36% | -16% | |
| Indicator | 1D | 1W | 1MN | |
| MACD (12; 26; 9) | Sell | Buy | Sell | |
| RSI (14) | Neutral | Neutral | Neutral | |
| Stochastic (5; 3; 3) | Neutral | Sell | Sell | |
| ADX (14) | Neutral | Neutral | Neutral | |
| CCI (14) | Buy | Buy | Neutral | |
| AROON (14) | Buy | Buy | Buy | |
| Alligator (13; 8; 5) | Sell | Neutral | Neutral | |
| SAR (0.02; 0.2) | Sell | Sell | Buy | |
| Aggregate | → | → | → | |