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‘‘People will be talking about [parity] more and more, but ... when you've rallied so far in a short amount of time, you do need to be a bit wary of extrapolation. ‘It's been a really strong month and I do think it's reasonable now to be considering 98 US cents to be within reach. But there is so much bad news priced into the US [dollar] at the moment that the market might start getting a bit lopsided.''
- Westpac (based on The Sydney Morning Herald)
Pair's Outlook
Pair continues to depreciate and at the moment is being supported by the weekly S2. We do not expect it to hold for a long. We might see some bullishness as short term stochastic points at the appreciation of the pair. We would suggest to focus on the 55-day SMA which is at 0.9366 at the moment. It could ignite a major rally or, a dip below it, could send the pair trailing to 0.9259.
Traders' Sentiment
Aussie is once again the most bought currency across the board. Greenback, however, remains not far away as well. That explains the no change in the market sentiment—65% of traders are long on the pair and 62% of pending orders are set to go long as well.
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