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- ANZ Banking Group (based on The Business Times)
Pair's Outlook
The Australian Dollar weakened against the US counterpart yesterday, but managed to avoid sharp losses in spite of Trump's speech. Overall, the Aussie remains on the back foot amid uncertainty around oil prices; therefore, another leg down is expected, making it the fourth consecutive decline. The monthly PP, the weekly S1 and the lower Bollinger band form immediate support circa 0.7650, which is likely to prevent the AUD/USD pair from falling too deep today. Eventually, losses could extend until the 0.7520 area is reached, namely where the 100-day SMA coincides with the 200-day one. Meanwhile, technical studies are unable to confirm the possibility of the negative outcome.
Traders' Sentiment
Market sentiment remains bearish, now at 67% (previously 71%). At the same time, the share of sell orders increased from 39 to 54%.
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