© Dukascopy Bank SA
"[The retail sales data] continued the tale of woe for the New Zealand economy. There has been that knee-jerk reaction lower in the currency, but then the temporary weakness spurred demand from exporters, which pushed the local currency higher in the afternoon."
- Bank of New Zealand (based on The Wall Street Journal)
Pair's Outlook
Yesterday looked promising for the pair, but today we see completely different view. Yesterday, before closing after peaking to 0.82, pair lost 40 pips; today it lost additional 90 pips already and at the moment is supported only by monthly pivot (S1)/Bollinger band at 0.81. At the moment it is unclear if this area will become turning point, as it happened on 23rd of October, or pair is planning to return to 200–day SMA at 0.8038.
Traders' Sentiment
Share of bears decreased by additional 2% since yesterday (6% in last few days), but they continue to hold overwhelming majority, 69% to be exact, of positions in the market. In addition, pending short orders account for 68% of all pending orders in the market. As a consequence we should continue to see bear dominated market in the near future.
© Dukascopy Bank SA