- IG Ltd. (based on Bloomberg)
Yesterday the Aussie retreated from its intraday high, as a decline in oil prices drove the commodity currencies lower. However, the immediate support in face of the weekly R1 managed to stop the AUD/USD from falling further. With risk-off sentiment prevailing today, the Aussie keeps diving deeper and is now on the edge of breaking the up-trend at 0.7185. Judging by the previous breakout attempts, the exchange rate could still return above the trend-line. Furthermore, the weekly R1 is bolstering the support line, while technical studies imply a positive outcome is possible.
Bullish traders' sentiment returned to its Monday's level of 74%, whereas the share of purchase orders added 17% points up to 57%.