- Mitsui Banking Corp. (based on Business Recorder)
The Australian Dollar managed to close trade at the 55-day SMA yesterday, thus, returning within the triangle pattern. Even though the desired scenario is another rally towards the weekly R1 and monthly PP cluster, the AUD/USD might still suffer serious losses. The up-trend would then fail again and prove to be unreliable, unless the weekly PP manages to hold losses near the 0.71 major level. Technical indicators are unable to confirm either scenario, as they are giving mixed signals in the daily timeframe today.
Bullish market sentiment returned to its Tuesday's level of 74% (up from 71% yesterday). At the same time, the number of commands to sell the Aussie edged higher from 66 to 82%.