© Dukascopy Bank SA
"The RBNZ gave the market the green light to keep buying the kiwi and that's what they've done. The currency looks very strong and completely shook off a near 1 cent collapse in the euro."
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
9 month high at 0.8355 seemed within the reach, but combined pressure coming form it and weekly R3 at 0.8341 made the pair to contract 33 pips before the close. Pair demonstrates rather positive, however much more modest, results today as well—at the moment it is testing strength of Bollinger band/monthly (R1) at 0.8322/23. Although, technical indicators point at appreciation of the pair Stochastic indicator is in overbought zone and %K and %D are almost crossing.
Traders' Sentiment
Traders continue to have strongly bearish attitude towards the kiwi as no less than 70% of positions on the pair have been short for this whole trading week. No different is today—bears hold 72% of all positions. Pending orders were almost equally distributed whole week and bears have gained upper hand only today as 57% (57%).
© Dukascopy Bank SA