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– IG Markets (based on Business Recorder)
Pair's Outlook
The Aussie did not suffer too much on Friday, in spite of the US Dollar receiving a boost from strong CPI figures. However, the Australian Dollar began outperforming its US counterpart today, easily making its way back above the 0.75 mark. The upside potential is to be limited by a cluster around 0.7575, represented by the weekly R1, the monthly PP, the 20 and the 55-day SMAs. Even if this area gets breached, a rally far beyond 0.76 is doubtful, as a downtrend resistance line lies at 0.7620. Technical indicators are unable to confirm the positive outlook, as they are now giving bearish signals in the daily timeframe.
Traders' Sentiment
Market sentiment returned to its previous Monday's level, with bulls taking up only 52% of the market (previously 56%). Meanwhile, 55% of all pending orders are to purchase the Aussie (up from 37% on Friday).
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