© Dukascopy Bank SA
"If things went wrong in the US, then at least in the short-term, we might see some strength against a weakening US dollar. But on the other hand, in what the market obviously considers as the more likely scenario that there will be a resolution, then the Aussie might benefit from a bit of risk-on movement."
- CMC Markets (based on ABC)
Pair's Outlook
Pair has advanced above the September high at 0.953, but we are not seeing an anticipated rally. It might be that we will see the pair dipping below it again. If the pair dips below 95 cents, we could see it trailing to the recent low around 0.944. In orders to uplift most of this downside pressure the pair should advance above 0.964, since it and any resistance levels prior to it are equally likely to fail the pair.
Traders' Sentiment
Despite the yesterdays' retreat it seems that bulls are not willing to surrender completely. At the moment they account for 63% of market participants, which is 3% more than yesterday, but 2% less than a few days ago. Distribution of pending orders remains at 59% of being set to go long on the pair.
© Dukascopy Bank SA