© Dukascopy Bank SA
"It's as you would expect, in recent weeks there's been increasing concerns about growth in China and the market was hoping for better, so this is a disappointment. In that sort of environment the Aussie gets hurt."
- Bank of New Zealand (based on The Economic Times)
Pair's Outlook
The pair is continuing to demonstrate bearish bias, but it seems it hit the bottom for the time being at the 20-day SMA today. We expect the pair to be capped by it and the monthly R1. In case the pair peaks above monthly R1 it is unlikely it could extend it's gains above the 100-day SMA. Dips below the 20-day SMA, however, taking in to account recent developments, might provoke a sell off till weekly S2/monthly PP.
Traders' Sentiment
Virtually no change is seen in market sentiment—bulls hold 62%, 2% more than yesterday, of open positions; bullish side of pending orders remains around 55% level .
© Dukascopy Bank SA