© Dukascopy Bank SA
"Over the next two days we are going to get 10 different Fed speeches so that could be quite interesting. We may get some more volatility. We will have to see what the different Fed speakers say."
- IG Markets (based on TVNZ)
Pair's Outlook
It seems that the pair's dip to 0.815 and following recovery has given a strong bullish impetus which pushed the pair through 82 cent mark. At the moment it is attempting to peak above the 83 cent mark. It is obvious the pair continues to face substantial downside risk, and should peak above the Monthly R1 to neutralise most of it. That would put September and November high's on the map. In case of a failure it should find support at 82 cent mark.
Traders' Sentiment
Despite the yesterday's peak in bullishness market sentiment is once again back to the level of the recent weeks—bears hold 75% of open positions. In addition to this, 62% (all orders) to 90% (50 pip range) of pending orders are set to go short on the pair as well.
© Dukascopy Bank SA