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"The Federal Reserve is first up in the morning at 8am New Zealand time, certainly the US data's been a lot stronger in the last month so there is some limited expectation we may get some guidance from their Federal Reserve."
- ASB Bank (based on Radio NZ)
Pair's Outlook
Since the beginning of the week pair has failed to pick up the pace and seems to be range bound between weekly PP and 20 and 100-day SMA/monthly PP/weekly S1. We don't see this situation changing any time soon. In case of an unexpected rally we do not thing the pair could advance above the weekly and monthly R1 with ease. In case of a failure it should show a solid close below the lower boundary of the range to move further on. This would put weekly S2/200-day SMA on the map.
Traders' Sentiment
There is not even a slightest change in the indicators of market sentiment since yesterday. Bears continue to hold 71% of all open positions holding and pending orders are equally divided between the long and short traders.
© Dukascopy Bank SA