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"Continued real money demand for Australia's sizeable pool of high-quality assets will drive support for the Australian dollar in that time."
- Barclays (based on The Wall Street Journal)
Pair's Outlook
After a week of choppy sessions pair continues to depreciate, but is stuck at trying to breach a cluster of support levels at 1.0351/27. Although technical indicators point at recovery of the pair, only few of them give conclusive and strong signals. As a result pairs downside risk is still strong and if it manages to advance below 200 day SMA we might see a sharp drop all the way to 1.0250.
Traders' Sentiment
USD and AUD, remain the most bought major currencies across the board—64% and 57% of all cases respectively. Bullish sentiment strengthened by 10% since yesterday and is at 62% mark today. Distribution of pending orders points at further bullishness as 62% of all pending orders on the pair are long.
© Dukascopy Bank SA