© Dukascopy Bank SA
"As a result currencies are taking their cue from equities, so at the start of the North American session we had the Aussie dollar run up a bit as stocks opened up in positive territory in the US."
- BK Asset Management (based on The Australian)
Pair's Outlook
Pair is giving more and more reason to believe it is being range bound. Upper boundary remains at 100-day SMA at 1.038, with lower boundary being somewhat around 1.034 (weekly S1) as Bollinger band seems to be playing secondary role. In general, range bounding should persist with possible deviations of 3-5 pips at each direction as for the time being we lack a catalyst to drive the pair. Longer term outlook lacks definite readings, but expectations of major market participants puts a lot of pressure on the pair.
Traders' Sentiment
For almost two weeks no less than 70% of traders are selling aussie versus the greenback. No different is today as 75% of traders are doing the same. In addition, slim majority (53%) of pending orders are to go short as well.
© Dukascopy Bank SA