© Dukascopy Bank SA
"That was definitely one of the factors that helped the Aussie to recover from initially a pretty soft start. People were thinking the Aussie was due for more of a correction."
- Westpac (based on The Wall Street Journal)
Pair's Outlook
Pair seems to be recovering after unsuccessful attempt to storm 1.06 which was stopped by weekly R2 at 1.0585 few days ago. However, it is very likely that positivity is coming from pending long orders which are being triggered at the moment. In the short to medium term pairs outlook is rather grim as technical indicators point at a dip as %K and %D of Stochastic indicator have intersected while being in overbought area and aggregate signal on weekly outlook is pointing at depreciation.
Traders' Sentiment
As for the whole past weeks, bears continue to hold approximately 70% of all positions in the market on the pair. Pending orders suggest that such situation will persist even further as majority (55%) of pending orders on the pair are to go long as well.
© Dukascopy Bank SA