AUD/USD to partially erase intraweek losses

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"In our experience, markets are prone to overshoot to the upside and the downside. As a result, we believe that the [US] dollar cycle could continue for at least another 12–18 months, likely appreciating by approximately 5% in 2017."  
– WisdomTree Funds (based on Market Watch) 


Pair's Outlook 

The AUD/USD currency pair behaved in accordance with expectations on Thursday, with the weekly pivot point managing to limit the losses. Immediate support appears to be sufficient to keep the Aussie elevated, thus, a positive outcome today would not be a surprise. Moreover, relatively weak US fundamental data weakened the Greenback today, allowing the Aussie to take the upper hand. Technical studies also suggest the Australian Dollar is to end the day in the green zone today, but with the top level being the 0.7960 mark, where a potential resistance trend-line rests. 

Traders' Sentiment 
Market sentiment remains bearish, with 63% of traders still holding short positions. At the same time, 55% of all pending orders are to sell the commodity currency, compared to 59% on Thursday.
© Dukascopy Bank SA

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