© Dukascopy Bank SA
"It feels like the RBA's strategy is to basically say to the foreign-exchange market that 'if you won't listen to us, how about a set of forecasts which spell out the potential effects of a stronger currency'."
- J.P. Morgan (based on The Wall Street Journal)
Pair's Outlook
Pair continue to depreciate after a failure at November high/20 and 200-day SMAs at 0.9543 yesterday. We do not expect weekly S1 hold long and that 0.9303 should be tested in the nearest future. In case of the failure there, the pair might drift to 0.9, where median expectation of major market participants is located. In order to uplift most of this downside pressure the pair should advance above 0.9543. In such case the pair might be tempted to test October high at 0.9762.
Traders' Sentiment
Aussie remains the most bought currency across the board which weighs noticeably on the market sentiment. Bulls account for 65% of the market participants; 66%, 3% more than yesterday, of pending orders are set in their favour as well.
© Dukascopy Bank SA