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"There is a possibility that the Aussie may actually go back down again toward parity by the end of January"
- Forecast Pte (based on Bloomberg)
Pair's Outlook
Bullish momentum of the aussie has faltered ahead of a major downward sloping resistance line, giving way for development of a bearish leg. The initial support to be tested resides at 1.0341, being the 55-day SMA, while subsequent levels are situated at 1.0318/10 and 1.0278/60. Some of the near-term technical indicators turned bearish, although most of them remain silent, suggesting that the current dip is likely to be subdued.
Traders' Sentiment
Most of SWFX market participants (74%) were right to place a bet against the Australian Dollar, as the pair has moved more than 44 pips against the currency, whereas 26% of traders continue to believe AUD is going to recover regardless of recent losses. As for the orders, 51% of them are to buy and 49% are to sell the aussie.
© Dukascopy Bank SA