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– Chris Weston, IG Markets (based on The Business Times)
Pair's Outlook
The Aussie experienced substantial volatility on Thursday, but ended the day with a slight decline, as the immediate demand area limited the losses. The same area keeps providing strong support today, now formed by the weekly S1, the 11-month up-trend, the 55 and the 100-day SMAs, which is still expected to prevent the AUD/USD currency pair from edging lower. As a result, the 0.76 major level is likely to remain intact, despite volatility stretching significantly lower. This should be the last day of AUD-selling for now, unless the bullish trend gets reversed, causing a drop towards the second support area around 0.7550.
Traders' Sentiment
Nearly three quarters (74%) of traders are short the Aussie today. Meanwhile, the number of sell orders edged up from 41 to 72%.
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