- Credit Agricole (based on Business Recorder)
The weekly S1 prevented the Australian Dollar from edging lower for the third time in a row and even caused a rally yesterday. Immediate resistance was breached, as the AUD/USD settled at 0.7459 on Thursday. Technical indicators are now giving bearish signals, suggesting the pair is to sustain losses again, while we expect the Aussie to outperform its American counterpart. If the Australian currency receives enough boost, the exchange rate might well go above 0.7485, namely the Monday's open price. Nevertheless, the 0.75 major level is still to prevent the pair from advancing too far.
SWFX traders' sentiment remains bullish at 74%, whereas the number of orders to buy the Aussie edged down from 37 to 36%.