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– Commerzbank (based on FXSreet)
Pair's Outlook
Even though the Australian Dollar edged higher on Friday, the 0.75 major level, where the 100-day SMA coincides with the 200-day one, successfully limited the gains. As a result, the ascending channel pattern has been preserved. Today the given point is now also reinforced by the upper Bollinger band, making it even more difficult for the Aussie to reclaim the 0.75 mark. Consequently, the commodity currency is expected to weaken against the American Dollar today, with the nearest support located around the ascending channel's lower trend-line, bolstered by the 55-day SMA, the weekly PP and the monthly R1, all circa 0.7429.
Traders' Sentiment
Traders' sentiment edged closer to equilibrium, as 52% of all open positions are now short, compared to 54% on Friday.
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