© Dukascopy Bank SA
"The market has taken on board that things are improving perhaps not only not as fast as people thought, but not at all. The sentiment at the moment is a little bit bearish on the Aussie, which essentially means that news that can be seen as negative is likely to resonate."
- National Australia Bank (based on Bloomberg)
Pair's Outlook
Pair continues to depreciate and at the moment is testing the strength of 100-day SMA. This is a key support and failure here could lead to a major sell off till 0.9111. In case the 0.9301 prevails, we do not expect that it could ignite a rally any time soon, but rather cause the pair to trade sideways. In case of an unexpected rally the pair should be capped by the 55-day SMA. Peak above it could would put November high on the map.
Traders' Sentiment
Market sentiment itself virtually remained the same—bulls hold 70% of all open positions, that is 2% more than yesterday. Bullish pending orders once again are in majority. It increased by 9% since yesterday, overall 11% decrease in the last few days, and is at 55%.
© Dukascopy Bank SA