© Dukascopy Bank SA
"The risk is the OCR track gets downgraded and the market knowing that is happy to sell the kiwi so some extent."
- Westpac Banking Corp (based the New Zealand Herald)
Pair's Outlook
NZD/USD has prolonged its retreat to three straight days and it has been rather sharp as the pair has lost almost 200 pips. The Kiwi is starting to lose its previous strength and that has been proven by easily sliding below monthly PP and weekly S1 at 0.8570/58. We expect that the pair will have a further decline; however, at 0.85 it might regain some short term bullishness.
Traders' Sentiment
Despite the fact that the Kiwi has performed well in recent weeks the bearish sentiment towards it has not changed much – it remains around 70%, as of today only 27% of traders are this pair's bulls. As for the orders placed 100 pips from the spot, there are 63% set to buy.
© Dukascopy Bank SA