© Dukascopy Bank SA
"Trading conditions and events today were clearly not conducive to a good performance from the Australian dollar, with a support level of 101.50 US cents being called into question following poor local building approvals data as well as Chinese equity market woes."
- CMC Markets (based on SBS)
Pair's Outlook
Pair started the week calmly at 1.02, but made a 90 pip dip today till monthly S1 where it received a bullish impetus and at the moment resides above weekly S1. Weekly technicals suggest that it is just a short brake and pair should resume its depreciation. As pair is trading outside the Bollinger band and bulls strengthened their presence in the market it is likely pair might be pulled up in the short term, but longer term outlook remains negative.
Traders' Sentiment
After the weekend bulls managed to strengthen their positions greatly. At the moment they constitute for 58% of market participants. Pending orders, however, suggest that bears might turn the tables around as 60% of all orders are to go short.
© Dukascopy Bank SA