© Dukascopy Bank SA
"There is a chance they might say that the decision not to taper in September was a very close call and in that case you might see the US dollar find a few more friends. There is probably a risk that the US dollar pushes higher out of the minutes and that of course would further weigh on the kiwi."
- Bank of New Zealand (based on The New Zealand City)
Pair's Outlook
At the moment the pair is trading almost exactly on the 20-day SMAs. It suggests that majority of the support at the moment is coming from the weekly PP at that a dip is as likely as a rally. In case of a dip below the weekly PP, we do not expect for it to develop in to the full out sell off as the pair should find support with the weekly S1 or, in worst case, 200-day SMA. In case of a rally we think it could advance above the weekly R1, but September high should not give up at first.
Traders' Sentiment
Bears continue to hold overwhelming majority of open positions. Today they account for 73% of market participants. In addition to this, bullish side of pending orders decreased to 64%. That is 1% less than yesterday and 5% less than on Monday.
© Dukascopy Bank SA