© Dukascopy Bank SA
- UOB (based on FXStreet)
Pair's Outlook
With another increase in commodity prices, the Australian currency was able to outperform its US counterpart. As a result, the AUD/USD currency pair surged 85 pips, breaching the immediate resistance in face of the weekly R1. Today this level acts as the nearest support, while the Bollinger band is the closest resistance. In case the Aussie edges up by day's end, the exchange rate could finally climb over the July 2015 high of 0.7738. However, a positive outcome is doubtful, as technical indicators are no long giving bullish signals in the daily timeframe. Moreover, bears might even drive the AUD towards the 0.76 major level, where the 20-day SMA coincides with the weekly PP.
Traders' Sentiment
Market sentiment weakened, but remains bullish at 70%. Meanwhile, the share of purchase orders surged from 31 to 69%.
© Dukascopy Bank SA