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"The market has clearly taken the RBA rate cut as signaling not just a shift in timing, but also that ultimately rates will fall further than was previously thought and that is being negative for the Aussie."
- RBC Capital Markets (based on Reuters)
Pair's Outlook
Being stopped by the weekly S1 at 1.021 yesterday pair managed to breach it earlier today and has fallen by 60 pips since then. At the moment it seems to be somewhat supported by weekly S2 at 1.014. It might be that this level will kick the pair higher. This would be in line with the readings of technical indicators—the stochastic indicator in short and medium term suggests that pair is at a turning point and a rally should erupt soon.
Traders' Sentiment
Bulls increased share of their market holdings by significant 6%. However, bears still dominate in the market as they hold remaining 63%. It seems that this happened by triggering some of the pending orders as at the moment they are almost equally divided between the long and short orders although yesterday it was 54% against 46%.
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