© Dukascopy Bank SA
© Dukascopy Bank SA
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- Stephen Innes, trader at OANDA (based on The Business Times)
Pair's Outlook
The Aussie has been appreciating against the US Dollar since the beginning of the year, but the pair formed an ascending channel pattern only in mid-January. On Friday the channel's support line managed to limit the losses, preserving the pattern, which should consequently lead to a rally today. Even though technical indicators are also in favour of the positive outcome, the Australian Dollar could struggle to outperform the US counterpart due to lack of impetus. As a result, the 0.77 major level is unlikely to be reclaimed, but a significant bearish development is also doubtful, as the commodity currency is being supported by the weekly PP.
Traders' Sentiment
Market sentiment remains bearish, now at 67% (previously 66%). The portion of sell orders barely changed, having fallen from 57 to 58%.