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"The strength we saw in the US dollar after Bernanke's comments the night before has been unwound. We've seen a classic short squeeze overnight."
- HiFX (based on The New Zealand Herald)
Pair's Outlook
Similarly to the aussie, the kiwi had a rather volatile session. It was trading in 165 pip range. Today, however, it is much narrower—no more than 50 pips and has moved from the opening price only by 10 pips. Technical indicators suggest that pair still has the propensity to fall further in the short term. Medium and long term technicals (The Stochastic indicator in medium term and aggregate in long term), however, give indications that we should keep and eye for a bullish attack.
Traders' Sentiment
Although outstanding positions are almost equally divide between the bears and the bulls it seems that bears are preparing to push the pair further down; 62% of pending orders are to sell the kiwi against the greenback.
© Dukascopy Bank SA