© Dukascopy Bank SA
"The RBA really started its very tangible increase in jawboning, seemingly to talk down the Aussie, on October 29 when Glenn Stevens delivered a speech that made many references to the Aussie being too high."
- Westpac (based on The Australian)
Pair's Outlook
Pair continues to depreciate and at the moment is trading below the weekly S3. We anticipate that the pair will test monthly S2 in the nearest future. Breach of it would open up a path till Aug low at 0.8849. In case that happens, we expect the pair to stall there as that is where the first quartile (lower 25%) of forecasts of major market participants is located. In order to uplift fair share of this downside risk the pair should return at least above the 94 cent mark.
Traders' Sentiment
Bears are once again applying pressure on the long traders in the market. Bearish side if pending orders increased by 6% and is at 56% gauge today. Bulls, however, continue to hold 72% of all open positions.
© Dukascopy Bank SA