© Dukascopy Bank SA
– OANDA (based on The Business Times)
Pair's Outlook
A surge in commodity prices allowed the Australian Dollar to outperform its US counterpart on Tuesday, with the pair once again putting the ascending channel's resistance line to the test. The channel is expected to remain intact today, and since the Aussie has little room for another rally, namely 20 pips, a bearish development today is the most probable outcome. Not only does the pair lack impetus for a serious decline, but also the strength to breach the immediate demand area, represented by the channel's lower boundary, the 100 and the 200-day SMAs. The base case scenario is a close around 0.7550.
Traders' Sentiment
Market sentiment is still mostly neutral, being that 51% of traders are short the Aussie and the remaining 49% are long. At the same time, 66% of all pending orders are to acquire the commodity currency.
© Dukascopy Bank SA