© Dukascopy Bank SA
– based on The Business Times
Pair's Outlook
The Aussie weakened against the US Dollar on Wednesday, but retained its position above the 0.7160 psychological support. Today the Australian Dollar has the potential to negate this week's losses, as technical indicators are no longer giving bearish signals in the daily timeframe. However, the monthly S1 and the weekly PP still form a strong resistance area around 0.7210, which is likely to prevent the AUD/USD pair from climbing higher. The base case scenario is a close somewhere between 0.7180 and 0.72, unless bears take over the market and trigger a decline toward the 0.7160 psychological demand level.
Traders' Sentiment
There are still 57% of traders being short the Aussie today, while the portion of sell orders increased dramatically, namely from 50 to 79%.
© Dukascopy Bank SA