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"There's growing speculation that the [Fed's policy committee] will shift the forward-guidance in favor of its highly accommodative policy stance, and we may see a sharp selloff in the greenback should the committee reduce the thresholds for unemployment and inflation."
- DailyFX (based on MarketWatch)
Pair's Outlook
As expected, none of the nearest supports were able to halt depreciation of the Australian Dollar, allowing the pair to reach the upper boundary of the bearish channel it has been trading within during April and June, namely 0.8959/05. This level is the lowest since September of 2010, but there is a high possibility the downside potential has not yet been fully exhausted.
Traders' Sentiment
The situation in the SWFX market remains more or less the same, since the longs continue to take the dominant position, specifically 74%. Accordingly, the bears are in a pronounced minority—merely 26%. Concerning orders, 42% of them are to buy the Aussie and 58% are to sell the currency against the greenback.
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