© Dukascopy Bank SA
"While the RBA is on the one hand jawboning the currency lower, it's almost like a bit of misdirection – they're waving the hand on one side and on the other they're noting a few things that are looking a little better."
- RBS (based on The Sydney Morning Herald)
Pair's Outlook
Pair continues to trail lower and is showing more clear bearishness. We expect it to continue to depreciate, but it seems highly doubtful it could fall below the 2013 (Aug) low. In case that happens it could easily pave the way till 0.859. As we can see the pair faces substantial downside risk which could be uplifted in case the pair shows a solid close above the 20-day SMA.
Traders' Sentiment
Bulls continue to account for 75%, the same as yesterday, of market participants. At the same time bears are increasing there pressure as their share of pending orders increased by 3% and is at 69% gauge today.
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