© Dukascopy Bank SA
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
Upon putting the 20-day SMA to the test, the Australian currency erased all intraday gains and suffered an 18-pip loss, having approached the 0.76 major level on Friday. Even though the 20-day SMA remains the closest resistance, it is now reinforced by the weekly and the monthly PPs, making it even harder for the Aussie to appreciate against the Buck. Meanwhile, the bottom target is represented by the rising wedge's support line, as well as the weekly S1 and the 55-day SMA. Risks of the downside breakout are now higher, unless there is sufficient impetus that could spark more AUD-buying.
Traders' Sentiment
Market sentiment shifted to the bullish side, with 69% of traders now holding long positions (previously 45%). There are also 69% of orders to sell the Australian Dollar, up from 67% last Friday.
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