© Dukascopy Bank SA
"US equities started to head lower substantially and that was brought about by lower earnings expectations which dragged the Aussie down."
- National Australia Bank (based on The Australian)
Pair's Outlook
Pair failed to advance above the 55-day SMA/weekly R1 yesterday and has plummeted below the weeks opening level. At the moment it is trading at weekly and monthly PP. We expect it to hold initial test, maybe even cause the pair to resume the recent really. For that it should show a solid close above the 55-day SMA/weekly R1 around 0.905. Further depreciation, however, remains possible although we expect 0.8932 to hold at least the initial test.
Traders' Sentiment
Only noticeable difference in comparison to yesterday is in distribution of pending orders. Bullish side in 50 pip range decreased by 16% and is at 53% whilst in 100 pip range it increase by 8% and is at 61% gauge today. Market sentiment remains 68% bullish.
© Dukascopy Bank SA