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- Royal Bank of Scotland (based on Bloomberg)
Pair's Outlook
The AUD/USD currency pair experienced a small corrective rally on Thursday, but with the 20-day SMA providing sufficient resistance to limit the gains. The Aussie is likely to extend its recovery, with the 20-day SMA still acting as the closest resistance. In case bulls manage to push the Aussie beyond that level, the weekly PP at 0.7724 will be the next target. According to technical indicators, the pair could remain relatively unchanged for the second day in a row, but weekly ones are now giving distinctly bullish signals, suggesting that the current ascending wedge's upper border around 0.79 could soon be reached.
Traders' Sentiment
Market sentiment remains bearish, but now at 55% (previously 58%). Meanwhile, the portion of orders to sell the Antipodean currency edged up from 49 to 67%.
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