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"The market has been driven by speculation about tapering. What people are doing at the moment is to adjust their positions based on policymakers' comments and data."
- a trader at a Japanese trading firm (based on CNBC)
Pair's Outlook
The currency pair keeps moving away from the key psychological level at 0.87. There are only a few pips left the price has to climb in order to fully breach a cluster formed by the weekly and monthly pivot points. Overhead there is another resistance at 0.9141/08 that should also weaken the currency's upward momentum, while 0.93 acts as a ceiling for the medium-term trading.
Traders' Sentiment
Following a notable dip in the share of long positions yesterday down to 70%, the strength of the sentiment was not only restored, it also surpassed the previous reading of 74% by surging up to 75%, meaning that three out of four traders expect the Aussie to increase in value.
© Dukascopy Bank SA