© Dukascopy Bank SA
– BNP Paribas SA (based on Bloomberg)
Pair's Outlook
Thursday's employment data caused the AUD/USD currency pair to erase almost all this week's gains, finding support only in front of the third demand area. Despite such a strong decline, the Australian currency still has room for more weakness, namely until it reaches the up-trend around 0.7680. Consequently, another leg down is possible today, although losses are unlikely to exceed the 0.76 major level, as the immediate support cluster remains strong. Meanwhile, technical indicators are giving bullish signals, suggesting a small correction after yesterday's slump could occur, with the 0.7660 seen as the ceiling.
Traders' Sentiment
Market sentiment became even more bearish than on Thursday, as 69% of all open positions are now short. The share of buy orders barely changed over the day, having risen from 54 to 56%.
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