- Glenn Stevens, RBA (based on WBP Online)
The Aussie rebounded yesterday, as was expected. The pair tested the resistance cluster around 0.7705, but lacked the strength to breach it. Ultimately, the Australian Dollar settled just over initial resistance, namely the weekly PP, and thus completely negated Monday's loss. The technical indicators remain bearish for the second day, but we still assume a rally is going to take place again today. A reliable resistance leve retains its position around 0.7705.
Although not as strong as yesterday, but market sentiment remains bullish: 64% of positions are long. The number of buy orders fell as well. At the moment they take only 40% (previously 48%) of the total.