© Dukascopy Bank SA
"This has created disparity between US and Australian monetary policy, with the RBA opting for a period of stability over the foreseeable future and, on the contrary, the FOMC slowly proceeding with moving from the dovish extreme of the policy spectrum to the opposite direction."
- FXCM (based on The Sydney Morning Herald)
Pair's Outlook
Pair started the week and 90 cent mark, but climbed higher and at the moment is aiming at 91 cent level after failing at it last week. We do not expect the pair to advance above it. At least not with ease as it would have to advance above 200-day SMA/2014 high afterwards. Failure at any of these resistances is very likely and might send the pair trailing till 100-day SMA, but 0.9019/0.9000 should stop the pair and cause it to consolidate slightly above it.
Traders' Sentiment
Bulls took a hit during the weekend. At the moment they hold 67% of all of the open positions, 2% less than on Friday, on the pair. In addition, long side of pending orders contracted by 30-40% and is below 50% level (43 to 47%) for first time in last 5 days.
© Dukascopy Bank SA