© Dukascopy Bank SA
"Fed policy and a stronger U.S. dollar will likely drive the Aussie lower. There's a key risk tonight with the minutes. Our view is that there's enough strength in the U.S. economy to warrant tapering throughout most of 2014."
- St. George Bank Ltd. (based on Bloomberg)
Pair's Outlook
Pair showed bullishness in the past weeks, but failed to advance above the monthly PP. We suspect that this might instigate bears to push the pair lower. It is very likely that until the 2013 low this will happen on a slow pace, but closer to it should gain the pace. In case of an unexpected attempt to push through the monthly R1 the pair should peak above the weekly S1 to neutralise most of the downside pressure.
Traders' Sentiment
Share of the long positions just slightly and is at 64% gauge today. Although share of bullish pending orders increased by 9% it is at 51% which suggest that we might not see any majors changes anytime soon.
© Dukascopy Bank SA