"Fundamentally, the Australian economy has suffered a fairly protracted decline which largely mirrors the fall in world commodity prices and the end of the super cycle. However, the Aussie Dollar has largely rejected the negative pressures due to the already steep decline."
- Blackwell Global (based on Investing.com)
Pair's Outlook
Following its massive plunge on Wednesday, the Aussie found support at the monthly S1. Today, the pair has managed to push through the weekly S1 to test the 100-day SMA. In case bulls manage to keep the current price level, the pair may close above the latter; however, the base scenario favours a close somewhere between the weekly S1 and the 100-day SMA. Nevertheless, technical indicators are bearish, indicating that the current upward momentum may only be a short term correction.
Traders' Sentiment
Market sentiment has not changed since yesterday, as 51% of traders are holding long positions. Meanwhile, 63% of pending orders are to sell the pair.
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