© Dukascopy Bank SA
"With Abe's yen policy, we're seeing a fight for exports in a global economy where consumption has fallen, and the losers are countries like Australia. There's a cage-match of ‘two men enter, one man leaves,' and the Australian car industry is unlikely to come out."
- Nomura Holdings Inc. (based on Bloomberg)
Pair's Outlook
After a volatile session yesterday, when pair was trading in 180 pip range, it seems we shall not see much of an action today as it has been trading in 60 pips range. In addition, similarly to yesterday, pair has not moved from the opening price by more that 20 pips. Shot term technical indicators suggest that pair should maintain its bearish trend. The Stochastic indicator horizon suggest that we might see a bullish correction some time soon, but there is not much indications about that from other technical indicators.
Traders' Sentiment
Although their holdings decreased by 3%, bulls continue to dominate the market since they hold 70% of all outstanding positions. It does not seem that situation might change significantly any time soon as bears have only a minor upper hand in the distribution of pending orders, 54% against 46%.
© Dukascopy Bank SA