© Dukascopy Bank SA
"The high New Zealand dollar continues to be a significant headwind, restricting export earnings and encouraging demands for import."
-Reserve Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
After having difficulties breaching 0.8247, pair gained momentum and breached quite a few major resistance levels. It does not seem that 0.8341 will be much of a trouble as well. The real question is about 0.8355 as after this major psychological level it is rather questionable if 0.84 will manage to slow down the pair. Technical indicators give positive outlook, however quite a few of them give neutral outlook suggesting that pair is likely to be driven by market sentiment.
Traders' Sentiment
Even after positive signals yesterday traders have strongly bearish attitude towards the kiwi as no less than 70% of positions on the pair have been short for this trading week. As for pending orders, although majority of pending orders are to go long, the edge is too small (51% vs. 49%) to expect any major changes soon.
© Dukascopy Bank SA