- ANZ Bank New Zealand (based on The New Zealand Herald)
The Australian currency has been declining against the US Dollar ever since it touched the 0.76 major level on Monday. The pair now risks dropping as low as the 200-day SMA around 0.7244, namely where the given SMA coincides with the weekly S3 and the nine-week up-trend. The first obstacle, however, is the monthly R2 at 0.7409, as this level kept the pair from edging lower during the preceding week. Technical studies, on the other hand, are giving bullish signals in the daily timeframe, implying that the 0.75 major level could be retaken by day's end. In case of a rally, the monthly R3 at 0.7560 is expected to provide sufficient resistance to limit the gains.
Bullish traders' sentiment remains unchanged at 69%, whereas the portion of sell orders returned to its Monday's level of 60%.