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"Stevens was telling us that intervention remains in the tool kit. While no move may be imminent, the desired effect has been had on the Australian dollar."
- Colonial First State Global Asset Management (based on The Wall Street Journal)
Pair's Outlook
Pair seems to have stabilized after finding support at weekly S1/monthly S2. We expect the pair to continue hovering above it in the short to medium term, any significant moves should be seen next week. However, the substantial downside risk persists. In order to neutralise it the pair should advance at least above the 100-day SMA. In case of a dip below the 0.905 we could expect it to trail till 2013 low.
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.
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