© Dukascopy Bank SA
"The kiwi has been struggling in the past couple of days, with a bit of profit taking on the crosses. It had probably gone too far, too fast."
- ASB Institutional (The New Zealand Herald)
Pair's Outlook
Pair has already depreciated more than 50 pips today as it is trying to consolidate below the autumn high at 0.8356. However, it is likely this level will give at least a short lived bullish impetus for the pair and we should see a recovery to 0.84. After that it becomes a bit more complicated as whole area from 0.84 to 0.85 has minor technical levels and/or only psychological levels which sometime can be very tricky.
Traders' Sentiment
Bearishness in the markets is continuing to hold as 74% of traders hold short positions on the pair (+2% since yesterday). Bears should continue dominate in the market as 58% of pending orders are to go short as well.
© Dukascopy Bank SA