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– Barclays (based on Reuters)
Pair's Outlook
On Tuesday the AUD/USD pair's bullish development caused a breach of the three-year down-trend. In spite of the breach, the pair still faces a relatively strong resistance around the 0.77 psychological level, represented by the Bollinger band, the weekly and the monthly R1s. Only after this area is overcome can the Aussie truly begin moving towards the second resistance line around 0.88. Technical indicators support the possibility of the bullish outcome, but the nearest resistance could still trigger a U-turn and cause the Antipodean currency to return under 0.7650. Ultimately, if the Aussie fails to stabilise above 0.77 by week's end, the bears are likely to take over.
Traders' Sentiment
Traders remain bearish on the Aussie, taking up 65% of the market. At the same time, the share of sell orders inched down from 62 to 59%.
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