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– Su-Lin Ong, RBC Capital Markets (based on Business Recorder)
Pair's Outlook
The Australian currency weakened against its US counterpart on Wednesday, ultimately suffering a 39-pip loss, thus, preserving the four-year down-trend. The Aussie appears to have regain some bullish momentum, with volatility climbing well beyond the 0.77 major level. However, the upside is expected to be limited at 0.7687—where the down-trend is located today. The weekly pivot point is also bolstering the trend-line, making the supply area even stronger. Meanwhile, technical indicators are also in favour of the positive scenario, as they retain bullish signals.
Traders' Sentiment
Bears keep retreating, as 67% of traders hold long positions today (previously 70%). At the same time, the portion of buy orders surged from 63 to 81%.
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