© Dukascopy Bank SA
"More strong data today in New Zealand has provided support and the Yellen comments emphasized the Fed needs to keep policy accommodative, reducing expectations on the QE taper outlook somewhat."
- RBS (based on The wall Street Journal)
Pair's Outlook
Pair peaked to weekly R1 at 0.833, but failed to consolidate there. It is once again back to trading below 0.8291. It seems that weekly PP/20 and 55-day SMA will keep the pair at bay for some time more. In order to uplift most of this downside pressure the pair will have to advance above 0.8366. Short term support should be found at 100 and 200-day SMA.
Traders' Sentiment
Kiwi remains one of the most sold major currency across the board. This continues to weigh on the market sentiment as bears account for 73% of market participant. Clear majority (65%) of pending orders are in favour of the bears as well.
© Dukascopy Bank SA