© Dukascopy Bank SA
"Once thought impregnable, the Australian dollar suddenly looks vulnerable as the market focuses in on the retreating resources sector, improving US economy and weakening sentiment in China."
- RBS (based on The Australian)
Pair's Outlook
After a failed attempt to advance above 0.97 yesterday pair dipped 130 pips. It seemed that pair will extend these loses further, but it found support with weekly pivot (S1) which sent the pair upwards. At one point it had appreciated by 100 pips from the opening price; at the moment it is 60 pips higher from it. Technical indicators suggest that pair should remain in pretty much the same are as of lately. Bulls, however, could find some inspiration in the RSI and the Stochastic indicators which are constructed to predict major turning points.
Traders' Sentiment
Market sentiment remains strongly bullish as almost 3 out of 4 investors have bought the aussie against the greenback. It does not seem that situation might change any time soon as bears hold only marginal upper hand in pending orders—53% of them are to go short on the pair.
© Dukascopy Bank SA