- Westpac (based on FXStreet)
The Aussie retreated from intraday gains on Wednesday, as the risk-off sentiment returned after US fundamentals showed oil production surplus. As a result, the monthly S2 was pierced again, leaving the door open for another AUD/USD decline. The Bollinger band suggests the Australian Dollar could drop to 0.6894, but a fall beyond the 2015 low of 0.6907 is doubtful, as the upbeat labour figures prevented the pair from a sharper slump. Meanwhile, technical studies are giving mixed signals, unable to confirm neither the bearish nor the bullish outcome.
Exactly three quarters of all open positions are now long, whereas the portion of orders to sell the Aussie increased from 42 to 68%.