- BNZ Markets (based on WBP Online)
The Australian Dollar plunged yesterday, despite bullish technical indicators. The initial support at 0.7941 failed to stop the fall, as was anticipated. Furthermore, the 0.79 psychological level barely managed to do provide support, as the AUD/USD pair even reached 0.7860 during the trading hours. As a correction has begun, we expect the Aussie to extend losses, despite technical studies showing distinctly bullish signs. The closest support is located at 0.7885, the weekly R1, although the pair is likely to edge even lower, possibly even towards the newly established monthly PP at 0.7834.
Market sentiment remains unchanged, with 71% of all positions being long, while the share of purchase orders slid from 58 to 52%.