- CMC Markets (based on WBP Online)
The Australian Dollar behaved according to expectations on Friday, as it erased most of Thursday's losses and put the 100-day SMA to the test. Although the AUD/USD currency pair failed to settle above the 0.74 mark, the bullish gap today has done the trick, namely caused the Aussie to advance further. The pair, however, is now located in a tight range between the 100-day SMA from the downside and the rather strong resistance cluster from the upside, represented by the 55-day SMA and the weekly R1. Technical studies suggest the Antipodean currency is to strengthen, but gains are unlikely to exceed the 0.7470 level today.
Traders remain bullish on the pair, as 73% of all open positions are long and 53 of all pending orders are to purchase the Aussie.