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– BAML (based on Reuters)
Pair's Outlook
Fortunately for the Australian Dollar, the US counterpart lacked the strength to post significant gains against it on Tuesday. As a result, the ascending channel pattern was preserved, but a drop in oil prices prompted investors to begin selling the commodity currency today. Trade is now likely to close in the red zone, with the weekly pivot point acting as the immediate support. However, the demand cluster around 0.7490 is much stronger and is to limit the losses if the weekly PP fails. With the breach of the channel, the Aussie is expected to continue declining against the US Dollar in the near future.
Traders' Sentiment
Toady 64% of all open positions are short, compared to 65% on Tuesday. There are also 58% of all pending orders to purchase the Aussie, compared to 44% yesterday.
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