© Dukascopy Bank SA
"New Zealand has a tightening bias, whereas Australia doesn't."
- Westpac (based on The Wall Street Journal)
Pair's Outlook
Unexpectedly the pair is demonstrating bullish bias and seems to be recovering after dipping below the 200-day SMA last week. At the moment it seems to be struggling with the weekly PP. In order to neutralise the potential risk of a pullback it should advance above the 55-day SMA. In case of a failure we are very likely to see a sell off to weekly S1. If that fails to stop the pairs depreciation, we are likely to se it trailing to 80 cent mark.
Traders' Sentiment
Bulls are once again putting pressure on the short traders. Bullish side of pending orders increased by 6% during the weekend and is at 65% gauge today. Bears, however, continue to hold the same share (73%) of all open positions.
© Dukascopy Bank SA