© Dukascopy Bank SA
"Australia's floating exchange rate has been a vital shock absorber for the economy during the upswing of the mining investment boom."
- IMF (based on The Sydney Morning Herald)
Pair's Outlook
Pair started the week slightly above the last week's closing level, but failed to maintain this bullish bias and failed t 100-day SMA. At the moment it is approaching weekly PP/monthly R1, but it should hold, at least initial, test. It is doubtful it will provide strong enough impetus for the pair to test 100-day SMA in the short term, but should not allow it to trail lower either. All in all, we expect some short to medium term consolidation slightly above 90 cent mark.
Traders' Sentiment
Bulls have strengthened their presence in the market. They continue to hold 65% of all of the open positions, share of pending orders in 50 pip range has not changed much, but increased by 21%, till 59%, in 100 pip range.
© Dukascopy Bank SA