© Dukascopy Bank SA
"The kiwi was as strong as 10 men, now it's had its big rally and the final straw to break the camel's back was the Fonterra announcement."
- HiFX (based on the New Zealand Herald)
Pair's Outlook
After last week's advance the pair lost basically all of its gains through first four days of this week; however, today NZD/USD pair has appreciated above monthly PP at 0.8570. Today's climb stopped at 0.8600, which is a major level and to our mind it should not move any higher than this at this point. We expect that the pair will consolidate at current trading level or it might slip a bit lower around weekly S1 at 0.8558.
Traders' Sentiment
The sentiment that the Kiwi will appreciate against the greenback is still low; however, it increased slightly and reached 29%. In the meantime, the share of orders to enter the market with a buy trade fell to 42%.
© Dukascopy Bank SA