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- Westpac (based on FXStreet)
Pair's Outlook
The Australian Dollar inched down against the US counterpart for the second day yesterday, getting closer to the point of erasing all gains, which occurred in the last three weeks. The pair remains under pressure, with losses expected to occur for the third consecutive time. The weekly S3 and the Bollinger band form immediate support around 0.7325, which are likely to limit the losses today, whereas a breach of this area could lead to a significant slump under the 0.73 mark. Overall, if the Aussie drops more than 30 pips today, the previous three-week recovery will become in vain.
Traders' Sentiment
Although market sentiment remains bearish, there are slightly less short positions, namely 55%, compared to 57% on Thursday. A significant portion of all pending orders is still to sell the AUD—74%.
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