© Dukascopy Bank SA
"This is what we have been seeing of late. When you get a slightly disappointing Aussie data point, the Kiwi will strengthen against the Aussie but there's a certain amount of contagion with the Kiwi against the USD."
- BNZ (based on The Wall Street Journal)
Pair's Outlook
Pair did not manage to extend it's gains above the weekly R1 yesterday, but it is trying to do so today. It is doesn't seem very plausible the weekly R1 could cause any major problems for the pair's bulls in the medium to long term. We should expect 2014 high/weekly R2 to be tested in the nearest future. It should hold initial test, but should succumb to continues pressure.
Traders' Sentiment
We are observing a slight increase in bullishness as long pending orders increased by 10-15% and is at 32-43% range. However, it should not bring any major changes soon as bears continue to hold 72% of all of the open positions.
© Dukascopy Bank SA