"As long as there is no sustained drop below 0.7600, we expect the current consolidation to be resolved to the upside."
— UOB Group (based on FXStreet)
Pair's Outlook
Thursday ended with the Aussie suffering another loss against the US Dollar, with the main driver being falling oil prices. Ultimately, the pair dropped 50 pips, finding support in front of the 20-day SMA, which keeps providing immediate support today as well, with the 55-day SMA bolstering it. Although support remains strong and technical indicators insist the commodity currency is to surge today, a close in the red zone would not be far-fetched. However, losses indeed are expected to be limited, with the exchange rate staying above the 0.76 handle. Meanwhile, the weekly and the monthly PPs circa 0.7650 are to prevent the AUD/USD pair from surging if bulls manage to take over.
Traders' Sentiment
Bearish market sentiment remains unchanged, taking up 74% of the market. The share of purchase orders inched up from 41 to 53%.
© Dukascopy Bank SA