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"Essentially, we've had three central banks now deliver some form of liquidity and I think that's something that continues to support the Australian dollar."
-Westpac (based on The Sydney Morning Herald)
Pair's Outlook
Pair bounced from 55 day SMA at 1.0424 but seems to lack momentum and is currently hovering above Fibonacci (38.2% of move since 6th of September) at 1.0446. Pairs downside risk is still elevated since it is highly likely that is has not undergone full bearish correction and amount of posted sell orders point at strong resistance above the current price.
Traders' Sentiment
Bears are loosing ground—at the moment only 50.5% or traders hold short positions on the pair (54% yesterday). However, this sentiment should strengthen in the future as 66% (+6% since yesterday) of posted orders are orders to sell the pair.
© Dukascopy Bank SA