© Dukascopy Bank SA
"It's really trading in a narrow range. The Chinese currency sold off earlier today and that saw the Aussie weaken but it was only 20 points and now it's rebounded."
- Commonwealth Bank (based on The Australian)
Pair's Outlook
Pair advanced above the 90 cent mark after bouncing off the 20-day SMA, but stalled ahead of 2014 high. It is unlikely we will see it falling to 89 cent area once again, but possibility of a further advancement is rather questionable. We expect it to be capped by 2014 high and monthly R1/weekly PP/20-day SMA. Afterwards we might see and attempt to reach new high, but failure to do so could send the pair trailing towards 89 cents.
Traders' Sentiment
Market sentiment hasn't changed a bit, it remained 62% bullish. Bears, however, increased their share of pending orders substantially; by 30-40%. Overall gauge now is at 55-60% being bearish.
© Dukascopy Bank SA