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"Once people realise that they're going to taper gently and slowly, with zero percent interest rates in the US and 2.5 percent in Australia, in my view, we're looking at the Australian dollar trading at 85 US cents (in the coming months)."
- Business Report (based on LTG GoldRock)
Pair's Outlook
Pair continued to trail lower and has reached new, 2013, low at 0.8822 yesterday. Similarly to yen, it has taken a step back as well, but we expect it to resume depreciating soon. Once it shows a solid close below the new 2013 low we think it won't be before long until weekly S3 will be challenged. Pair should stall there, but it is a bit to early to make conclusions yet. As pair is facing substantial downside risk, it should show a solid short term rally, at least till 91 cent mark, to uplift most of it.
Traders' Sentiment
Bearish side of pending orders remains at 74% level, the same as yesterday. Bulls, however, strengthened their presence. At the moment they account for 73% of all traders. That is 2% more than yesterday.
© Dukascopy Bank SA