© Dukascopy Bank SA
"If Congress isn't able to resolve this impasse before the US hits the debt ceiling, one of the possible consequences could be a fall in the US dollar and further unwelcome (upward) pressure on the Australian dollar."
- ABC radio (based on The Australian)
Pair's Outlook
For the past 3 days pair has been struggling with 94 cent mark. It raises more and more doubts that the pair could resume recovering. At the same time, however, it has supported by the 20-day SMA. In order to lift up most of the downside risk, the pair should advance above the September high at 0.952. If the pair dips below the 0.924, we could expect it to fall to 90 cents and, if that does not hold, below 89 cents afterwards.
Traders' Sentiment
Although both, the aussie and the greenback, are bought in more cases than sold across the board, the aussie is the most bought currency across the boards at the moment. It explains the highly bullish sentiment of the pair—68% are long on the pair. In addition to this, 61% of pending orders are set to go long as well.
© Dukascopy Bank SA