© Dukascopy Bank SA
"The recent run of data out the States has been good, and that increases the possibility of earlier tapering, putting downward pressure on the Aussie dollar. The Aussie is likely to trend lower over the coming months."
- Barclays Plc (based on Bloomberg)
Pair's Outlook
Pair continues to and at the moment is facing monthly S1/weekly S2/Fibo 61.8% (September to October rally) at 0.9249/23. We expect it to hold the initial support. Looking at the short term Stochastic it might be we will see a short term rally even. Dip below the mentioned level would put 0.911 on the map. In case of an unexpected turnaround the pair should advance above the November high/200-day SMA in order to neutralise most, if not all, downside risk.
Traders' Sentiment
It seems that bears are maintaining the pressure on the market as bullish side of pending orders decreased by addition 7% since yesterday and is at 48% gauge today. Bulls, however, continue to hold overwhelming majority (71%) of all open positions.
© Dukascopy Bank SA