© Dukascopy Bank SA
"The fact the kiwi thumbed its nose to all of this and sold off looks to be a reflection of weakness amongst the cross rates."
- BNZ (based on The Wall Street Journal)
Pair's Outlook
Pair continued to depreciate, but found support with the weekly S1 and returned above the monthly S1. We do not expect the pair to extend the gains above the 100-day SMA. It might even cause another sell off in which case the pair might fall to 0.80. In order to uplift most of tis pressure the pair should peak above the 20-day SMA.
Traders' Sentiment
Bears once again hold tight grip on the market. Today they hold 69% of open positions. It is 2% less than yesterday. However, bearish side of pending orders increased by 22% and is at 63% gauge today.
© Dukascopy Bank SA