- National Australia Bank (based on CNBC)
The Australian Dollar's rally on Monday was limited by the immediate resistance cluster, which is also likely to turn the table around earlier than anticipated. The AUD/USD exchange rate is also subject to risk aversion, thus, increasing the possibility of the pair closing trade in the red zone. The demand around the broadening rising wedge's support, even though it is reinforced by the monthly PP, is not strong enough to hold the intraday losses. As a result, the 20-day SMA around 0.7013 or even the weekly S1 at 0.6962 are the levels to save the pair from sharper dips.
Today 71% of traders retain a positive outlook towards the Aussie. Buy orders now take up 59% of the market, up from Monday's 42%.