© Dukascopy Bank SA
"Market positioning means the NZ dollar is particularly vulnerable to any downside surprises on global growth and corresponding risk aversion flows."
- BNZ (based on The Economic Times)
Pair's Outlook
After receiving a bullish impetus from 0.84 pair has peaked by 60 pips and tested 20-day SMA, which was enough to push pair back as it lost almost all of its gains. As 0.84 are is very important psychologically this might been an attempt by long traders to check the waters before preparing another charge. This Is also supported by the medium and long term technicals.
Traders' Sentiment
Majority of markets participants remain convinced that the kiwi is bound to loose its value versus the greenback as 73% of all positions on the pair are short. In addition to this, 53% of all pending orders on the pair are to go short as well.
© Dukascopy Bank SA