© Dukascopy Bank SA
"Another factor is that the US economy is likely to accelerate faster than the Australian economy in 2014 and this will put more pressure on the Aussie dollar."
- Principal Global Investors (based on Sydney Morning Herald)
Pair's Outlook
Pair is signalling a possible major recovery after a bounce off the weekly PP. We expect this rally to continue and 20-day SMA/weekly R1 to be breached soon. However, the pair still faces significant downside risk. In order to neutralise it the pair should advance above the 100-day SMA. In case the pair fails and dips below 0.9088 that could provoke a failure till 0.8930.
Traders' Sentiment
Aussie is the most acquired major currency across the board which continues to weigh on the pair as 73% of all open positions on the pair are long. Bears, however, continue to apply pressure as 71% of all pending orders are set to go short.
© Dukascopy Bank SA