© Dukascopy Bank SA
''We are bumping up against some important levels for the Australian dollar now. It does make you think that coming into the next meeting for the RBA that the jawboning language will become a little noticeable again.''
- HSBC (based on Sydney Morning herald)
Pair's Outlook
Pair showed a strong sell of and immediate recovery last week and is attempting to advance further, but seems to be struggling with 2014 high at 0.9461 which was reached in April. Peak above this level could provoke a major rally, maybe even above 0.95 threshold. Failure remains rather possible as well, but it is unlikely it could push the pair below 93 cent mark.
Traders' Sentiment
Despite the recent increase in bullish pressure it seems that bears are not going to give up easily as for a third day in a row bears continue to hold around 60% of all of the open positions. Besides that, short side of pending orders expanded by 5-15% and is just slightly in favour for the bulls.
© Dukascopy Bank SA