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– CMC Markets (based on Bloomberg)
Pair's Outlook
On Wednesday the Aussie climbed higher against the US counterpart, completely ignoring the immediate resistance level. However, the second cluster, located around 0.7295, successfully limited yesterday's gains. This area keeps providing resistance today, but with the risk-on sentiment still present on the markets this cluster is unlikely to cause a U-turn. Instead attention turns to the weekly R3 at 0.7331, which is also reinforced by the descending channel's upper trend-line. Meanwhile, technical indicators are unable to confirm the possibility of the positive outcome, as they keep giving bearish signals.
Traders' Sentiment
Bulls and bears are now closer to being in a perfect equilibrium, as 51% of all open positions are now short (previously 59%). At the same time, 51% of all pending orders are to sell the Australian currency.
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