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"Clearly the Reserve Bank is forward looking and there are good reasons for the bank to stay on the interest rate sidelines at present. While the Reserve Bank indicates that it has the ability to cut rates should stimulus be required, we don't expect it to act on the easing bias."
- Commsec (based on The Australian)
Pair's Outlook
Momentum, which pair gained after bouncing from 1.01, remains strong as it seems that pair managed to breach a cluster of levels at 1.0288/77. However, pressure and downside risk on the pair, which most likely is coming from 1.04 area, remains significantly strong. This is very well illustrated by technical indicators from relevant horizons. Somewhat to this contributes and recent, although minor, increase in bearish market sentiment.
Traders' Sentiment
Bears strengthened their presence in the market, but only marginally, by 2.5% if to be exact, and at the moment account for 53% of all market participants. Majority of pending orders (55%), however, is to go short as well suggesting we might see bears gaining a significant upper hand in the market.
© Dukascopy Bank SA