© Dukascopy Bank SA
"The kiwi's drifted lower all day, pulled down by a weaker Aussie that reflected the Australian economic data. The kiwi's still at a pretty strong level - the story for the week is probably going to be a little bit of a strong US dollar."
- Commonwealth Bank (based on TVNZ)
Pair's Outlook
Pair dipped by more than 50 pips today with intention to consolidate below 200-day SMA, but was kicked back by the Bollinger band. Although market sentiment is strongly bearish, technical indicators suggest that pair should be rather stable and we might see a bullish correction in the future. To sum up all recent developments it seems that 200-day SMA might be the level which will give the impetus for such turn of the events.
Traders' Sentiment
Bears hold their ground firmly. They continue to account for no less than 70% of market participants. Clear majority of pending orders is to go short suggesting that bears will continue to dominate in the market.
© Dukascopy Bank SA