© Dukascopy Bank SA
"The market was pricing in way too many rate cuts. The kiwi dollar itself has probably done enough on the downside, and will be reasonably well supported through the rest of the year."
- RBC Capital (based on TVNZ)
Pair's Outlook
Before the close yesterday, pair managed to dip 45 but advance 80 pips. Today, however, it is much calmer and fluctuating at opening level of 0.827 (+/- 25 pips). It seems that initial momentum in the pair has worn of and there is some pressure coming on the pair from weekly PP and 100 day SMA. It seems that pair is keen to remain rather volatile, but overall trend, similar to the expectation of major market participants, should remain bullish.
Traders' Sentiment
For almost a week now market sentiment has been strongly bearish with no lower than 70% presence of bears in the market; 71% today. Not less important is the fact that 54% of pending orders are to go short as well.
© Dukascopy Bank SA