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"And this is more or less a nail in the coffin for another rate cut as far as I'm concerned. The Reserve Bank can sit tight on 2.5 per cent for quite some time."
- TD Securities (based on ABC)
Pair's Outlook
It seems that bears are capitalizing on their gains, but we do not expect that this will incentivize bulls to push the pair higher and cause a rally. We expect the pair to trade sideways for some time. In case of a dip below the 0.9057/34 area, a sell off till 0.8949, and then till 0.8849 is almost imminent.in order to neutralise most of this downside risk the pair should advance above the 93 cent mark.
Traders' Sentiment
Bulls continue dominate in the market—At the moment they account for 73% of market participants. It is 4% more than yesterday. In addition to this, distribution of pending orders is in slight (51% versus 49%) favour for the bulls.
© Dukascopy Bank SA