© Dukascopy Bank SA
"In coming years, an assumed improvement in world economic growth is expected to keep commodity prices at relatively high levels, which should provide support to the terms of trade and the Australian dollar."
- The Australian Bureau of Agricultural and Resource Economics and Sciences (based on The Australian)
Pair's Outlook
Pair dipped by more than 95 pips yesterday, but continues to appreciate after receiving a strong bullish impetus from monthly S1 at 1.011. Pair has advanced by almost 130 pips since then and at the moment is hovering slightly above weekly pp. Outlook on the pair is rather grim, however. Technical indicators on aggregate send rather clear signal and it seems that pairs downslide will begin once it reaches 1.0275 area.
Traders' Sentiment
Pair is at a stalemate situation similar to the one at the end of the last week—there is almost equal shares of bulls and bears in the market. 54% of pending orders are to go short which implies that market sentiment should return on being bearish.
© Dukascopy Bank SA