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– BBH (based on Reuters)
Pair's Outlook
The Aussie erased all intraday losses on Wednesday and remained completely flat against the US counterpart. However, the USD-selling persisted today as well, together with outstanding Australian trade surplus figures, caused the AUD/USD currency pair to soar a nearly three-month high. The exchange rate appears to have topped out at the 0.77 major level, where the upper Bollinger band coincides with the weekly R3. Today's rally also caused the 11-week resistance line to be pierced, indicating that more bullish momentum could follow and that the 0.77 resistance is unlikely to hold for long.
Traders' Sentiment
More than three quarters (68%) of all open positions are short today, compared to 63% on Wednesday. Furthermore, 55% of all pending orders are now to sell the Aussie, up from 45% yesterday.
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