© Dukascopy Bank SA
"We were swamped by other good news - it's hard to say how much impact dairy had, though such a big jump did show some reaction (in the kiwi). People have forgotten about Italy and (the US fiscal) sequester for now."
- Westpac Banking (based on TVNZ)
Pair's Outlook
The pair is losing its momentum, as, although it is above monthly PP at the moment, it does not seem that the price might stay there for long. 100-day SMA, however, remains a strong support level, since the pair closed above it yesterday and only briefly dipped below it today. Most likely a lot of this pressure of the pair is coming from the 20- and 55-day SMAs and a 0.84 area. The latter has historically been a major level, as NZD/USD has breached it only 3-4 times in total.
Traders' Sentiment
For a week now market sentiment has been strongly bearish with no lower than 70% presence of bears in the market; 74% today. In additions to this 61% of pending orders (+7% since yesterday) are to go short.
© Dukascopy Bank SA