© Dukascopy Bank SA
"As long as the China jitters linger, the kiwi's going to suffer more than most. The kiwi's still consolidating in the 77 to 78 US cents range, but looks likely to test the bottom of that tonight."
- Bank of New Zealand (based on The Herald Sun)
Pair's Outlook
It seems that the pair has reached new low, but remains capped below 0.78 cents. Short term technicals indicate that pair should be trading like this in the short term. Medium term technicals, however, speak about the presence of significant downside risk. Traders should consider the possibility of a dip all the way to 0.75 cents area since between it and the current level there is only one moderate strength support area.
Traders' Sentiment
Bulls are pushing further as they have increased the amount of their holdings by additional 1% (61% in total). It is likely that such trend will continue further as 54% of pending orders are set to buy the kiwi against the greenback.
© Dukascopy Bank SA