© Dukascopy Bank SA
"Critically, we would view this as a benign 'collapse' in the Australian dollar; not one sparked by a domestic or offshore 'crisis'."
- Deutsche Bank (based on The Sydney Morning Herald)
Pair's Outlook
Pair showed minor bearish bias earlier in the day, but apparently received a bullish impetus from the 20-day SMA and at the moment is approaching 90 cent mark. We expect it to hold at initial test, but the pair's bulls should not give up easily and push the pair through. That would put 2014 high and 200-day SMA on the map. The latter one should be perceived as a medium to long term target.
Traders' Sentiment
Bulls are trying to strengthen their positions further as bullish side of pending orders expanded by approximately 20% and is at 75-90% level depending on the range around the market price. Market sentiment, however, hasn't really change—at the moment it is at 62% bullish.
© Dukascopy Bank SA