© Dukascopy Bank SA
"Resolution of the U.S. fiscal cliff still seems some way off, and it is increasingly likely that a comprehensive agreement will be delayed into the new year, meaning the economy may go over the cliff in January only to be hauled back up again soon after"
- Barclays Capital (based on CNBC)Pair's Outlook
Selling pressure AUD/USD encountered near the upper edge of the bearish channel at 1.0475/92 prevented further development of a rally. Consequently, the currency pair is expected to initiate a down leg that in turn may last until 1.0109 in the medium term, if the 200-day SMA fails to halt depreciation of the Australian Dollar. However, some of the closer supports, namely at 1.0410/00 and 1.0388/77, could also delay the decline.
Traders' Sentiment
A vast majority of market participants (71%) consider the U.S. Dollar as a stronger currency than its Pacific counterpart, leaving merely 29% of the market to those, who believe the aussie is going to gain in value, whereas there is almost no difference in the numbers of buy (49%) and sell (51%) orders.
© Dukascopy Bank SA