© Dukascopy Bank SA
"The Australian Dollar has had a divergence away from the path of U.S. equity performance of late, with the currency still reeling from last week's RBA rate cut as well as the perception that there is another to come before year end."
-CMC Markets (based on The Wall Street Journal)
Pair's Outlook
Pair hovers slightly below 1.02 as it rebounds form cluster of support levels at 1.0160/133. It is almost certain pair will continue to recover, however it should not be rapid as quite a few technical indicators send neutral signals neglecting the probability that pair will gain momentum.
Traders' Sentiment
Traders are continuing to show clear preferences as ratio between bulls and bears remains 71% to 29%, respectively for the third consecutive day. However, 65% of pending orders are to sell which points at possible major shift in sentiment in the future.
© Dukascopy Bank SA