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- Mizuho Securitites (based on Business Recorder)
Pair's Outlook
After falling for almost two weeks the AUD/USD currency pair began to recover, closing at 0.7445 last week. Further upside development could be far-fetched, as a tough supply cluster, represented by the monthly S1, the weekly R1, the 20 and the 200-day SMAs, is likely to prevent the Aussie from retaking the 0.75 psychological level. Although there is sufficient room for a rally today, technical indicators suggest otherwise, as they retain bearish signals. Consequently, a possibility of bears taking over the market today exists, with the weekly PP and the monthly S2 forming immediate support around the 0.74 mark.
Traders' Sentiment
There are only 51% of traders with a positive outlook towards the Australian Dollar, compared to 52% at the end of the previous week. Meanwhile, 54% of all pending orders are to sell the Aussie.
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