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"We thought the US dollar was over-sold a bit and that seems to be the dominant theme. If the US economy is on the up, then the US dollar should be in a multi-year upstream."
- Commonwealth Bank of Australia (based on TVNZ)
Pair's Outlook
It seems that support from 55-day SMA is irrelevant anymore and only October low in conjunction with weekly S1 seems to be holding the pair. If the pair closes below it and dips below the 200-day SMA we might see a sell off to 80 cent mark. In order to get rid of most of this risk the pair should advance above 0.836.
Traders' Sentiment
Kiwi remains one of the most sold major currencies across the board which continues to weigh on the market sentiment. Bears continue to hold overwhelming majority (71%) of all open positions. Bullish side of pending orders, however, increased by 8% and is at 73%.
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