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"We were expecting a little correction in risk sentiment and confidence, and the Italian election looks like a bit of an excuse. This year has been one of the most bullish years for stock markets ever and it doesn't surprise me to see a little pull back."
- HiFX (based on TVNZ)
Pair's Outlook
Pair remains very volatile—it dipped 100 pips after touching 100-day SMA yesterday, but was pushed almost al the way back by 200-day SMA/weekly S2/Bollinger band at 0.822. However, weekly S1 at 0.829 killed the bullish momentum as the pair now is hovering at 0.825. Short and medium term technicals remain rather inconclusive suggesting that we might continue seeing the pair trading sideways next week as well. Longer term outlook, however, is much brighter and pair might step up to 0.84.
Traders' Sentiment
Although the share of their outstanding positions in the market decreased by 3% since yesterday bears remain strong as they account for 73% of all market participants. Distribution of pending orders is on their side as well—64% are to sell the kiwi versus the greenback.
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