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– Westpac (based on FXStreet)
Pair's Outlook
The Australian Dollar experienced a sharp decline against the American Dollar on Wednesday, falling back under the 0.77 mark. Even though the AUD/USD currency pair attempted to recover today, lower commodity prices keep weighing on the Antipodean currency. However, the Aussie faces a strong demand area around the 0.76 major level, represented by the weekly S1, the monthly PP, the 55 and the 100-day SMA, but most importantly—the 11-month up-trend, which received an additional confirmation from yesterday's slump. This cluster is expected to limit any possible losses, while triggering AUD-buying later on.
Traders' Sentiment
Nearly three quarters (73%) of all open positions are short today. Meanwhile, the share of buy orders increased from 51 to 59%.
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