© Dukascopy Bank SA
"First we had the US dollar strengthen after the Fed minutes this morning, then we got the second wind when the HSBC preliminary PMI was exceptionally weak for China. The Kiwi is towards the midpoint against the US dollar, and if we crossed over that and went lower, that starts to open up doors to push to a lower number."
- OMF (based on The Australian)
Pair's Outlook
Pair found support with 20, 55 and 100-day SMAs and has tested weekly S1 today. Taking in to account recent developments the pair should show a solid close above monthly R1/weekly PP in order for it to start recovering. Another dip below 0.8258/54 might provoke a further sell off, but that seems very unlikely at the moment.
Traders' Sentiment
Bears are dominating the market today. They continue to hold overwhelming majority (70%) of all of the open positions. Besides that, bearish side of pending orders expanded by 24-22% and is around 70% depending on the range around the market price.
© Dukascopy Bank SA