© Dukascopy Bank SA
"I think the move this afternoon tells you more about positioning than the news flow. People were thinking that just because the US Federal Reserve was on hold, asset prices globally would kind of go back to where they were earlier in the year. Once the Aussie dollar came back through US97c, that started to trip some stop-loss positions and that triggered a sharper move in the currency."
- ANZ (based on The Australian)
Pair's Outlook
Pair did not manage to advance above weekly R1, what would have put June high on the map, and at the moment is hovering slightly above the 200-day SMA. Mainly due to quite a few individual technical indicators and the Stochastic indicator in the medium term that give bearish outlook we expect the pair do trail lower. To be fair, we don't see it dipping below the 95 cents in the nearest future, but it should not cause any major rallies.
Traders' Sentiment
Situation in the market remains pretty much the same as yesterday. Long traders account for 61% of market participants. That is 2% less than yesterday. Bullish side of pending orders increased by 4% since yesterday and is at 65% gauge today.
© Dukascopy Bank SA