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- Barclays (based on Reuters)
Pair's Outlook
Not only did the Aussie remain relatively unchanged against the US Dollar on Monday, but also remained flat through most of today as well. Since the ascending channel pattern was breached to the downside on Friday, it is only logical that more bearish momentum will now follow. Trump's speech today is bolstering this possibility, as his tax plan reveal is expected to boost the Buck. The pair could then slide all the way back to 0.76, where the weekly S2 coincides with the lower Bollinger band. However, technical indicators are now giving distinctly bullish signals, suggesting that the speech could have a negative effect on the Greenback. The 0.7720 is expected to be the ceiling.
Traders' Sentiment
Traders' sentiment remains strongly bearish, at 71%, but the number of purchase orders is also relatively high, taking up 61% of the market.
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