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"The U.S. dollar has broadly weakened since Yellen's prepared remarks came out, and the Aussie move has been a by-product of that. We suspect Aussie is going to go higher, and part of that is the fact that we don't think tapering is going to happen until the first quarter, whereas expectations have kind of drifted more towards January."
- Royal Bank of Canada (based on Bloomberg)
Pair's Outlook
Pair has spend last three days bouncing off and testing 100-day SMA. We expect it to follow similar trend further on at least till the beginning of new trading week. In case of an unexpected failure, a dip below 0.9249 could provoke a sell off till 0.9111. In order to cause at least a minor rally the pair should peak above the 0.9423/69 resistance area.
Traders' Sentiment
Pending orders are perfectly evenly divided between the long and short traders. Bulls, however, to hold overwhelming majority (70%) of all open positions.
© Dukascopy Bank SA