© Dukascopy Bank SA
"Interest rates have as good as priced in an awful lot of action for next year. That's going to keep it pretty strong, and it could go even stronger when they actually deliver."
- Commonwealth Bank of Australia (based on TVNZ)
Pair's Outlook
Last three days are indicating that the pair is most likely range bound. It became even more evident today when the pair tested 0.8218/187 area once more but failed to consolidate below it. We do not expect any major sell offs or rallies to develop from this situation, but if the pair remains above 82 cents, we expect it to start new week above the this week's closing value. Dip below the 82 cents would pave the way for a sell off till 200-day SMA.
Traders' Sentiment
Bulls are increasing their pressure on the bears as bullish side of pending orders increases by 7% and reached an equilibrium point with the short pending orders (50% vs. 50%). Bearish side of open positions, however, increased by 2% (7% in the alst few days) and is at 72% gauge today.
© Dukascopy Bank SA