- Bank of America Merrill Lynch (based on FXStreet)
On Tuesday, the weekly PP caused the Australian Dollar to climb up versus the Greenback. Although the exchange rate reached as high as the 20-day SMA, trade still closed 0.7691, just 9 pips under the target level. We expect the Aussie to suffer losses today and fall down to 0.7640, where the lower Bollinger bond rests, as the AUD/USD is facing a strong resistance cluster around 0.7715. At the same time, technical indicators keep giving bearish signals, bolstering the possibility of the Buck outperforming the Aussie.
Bullish traders' sentiment remains unchanged at 73%. However, there are even less orders to buy the Australian currency today, only 28% of them.