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– Saxo Bank (based on Reuters)
Pair's Outlook
Although the Aussie failed to outperform the US counterpart on Wednesday, the pair still barely edged lower. Today's performance is to determine whether the four-month up-trend will be preserved or broken. A strong bullish development will be difficult to achieve, as a rather tough resistance area is located around 0.7650, represented by the 20-day SMA, the weekly PP and the four-year down-trend. Nevertheless, a 45-pip rally seems quite possible, even though technical indicators are unable to confirm that. At the same time, the group of supports circa 0.7560 is to limit any losses if those occur.
Traders' Sentiment
Market sentiment remains strongly bearish, as 68% of all open positions are long today (previously 67%). Meanwhile, the portion of buy orders dropped dramatically, namely from 71 to 49%.
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