© Dukascopy Bank SA
"It was all about the CPI. The market was spooked into thinking the Reserve Bank will cut and so the Kiwi fell."
- Westpac (based on The Wall Street Journal)
Pair's Outlook
Rather unexpectedly pair is continuing its bearish dip after receiving a push from cluster of resistance levels at 0.8177/85 area and is currently is trying to fall below weekly pivot (S1) at 0.8116. Technical indicators let us believe that this bearish run will continue some time longer, at least until pair won't approach cluster of support levels at 0.9889/81 area.
Traders' Sentiment
Bulls are in overwhelming minority as 69% of traders hold short positions on the pair expecting kiwi's depreciation versus the greenback. Distribution of pending orders does not suggest any changes in the near future as 53% of all pending orders on the pair are to go short.
© Dukascopy Bank SA