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- Commonwealth Bank of Australia (based on The Business Times)
Pair's Outlook
The AUD/USD currency pair surprised with its performance on Wednesday, as it completely recovered from its intraday low and even erased Tuesday's losses. However, the Aussie remains under pressure, as yesterday's rally caused the exchange rate to approach the monthly pivot point, which acts as the nearest resistance this week. This level is likely to prevent the commodity currency from retaking the 0.75 level and could spark more AUD-selling. In case bears do take over the market, as technical indicators suggest, the 20-day SMA and the weekly PP around 0.7450 are to limit the losses.
Traders' Sentiment
Market sentiment scales shifted to the bearish side even more today, being that 53% of all open positions are short (previously 52%). The portion of sell orders inched up from 58 to 66%.
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