- Bank of New Zealand (based on The Sydney Morning Herald)
The Australian currency overperformed yesterday, as it breached the second resistance area; however, still failed to maintain trade above the 0.70 mark. The main driver for such a rally was an increase in oil prices, which transferred some of the bullish momentum in today's AUD/USD trade as well. The pair is also supported by the weekly R1 and the monthly S2, while the closest resistance lies around 0.7062, represented by the 20-day SMA. Meanwhile, technical indicators shifted from mixed to bearish, insisting the Aussie is to end the week with a mild sell-off.
Bullish traders' sentiment returned to its Tuesday's level of 73%, whereas the portion of sell orders decreased from 62 to 57%.