© Dukascopy Bank SA
"What a week! It's come under a lot of pressure. There seems to be an amazing degree of resistance at 88 cents, it just does not want to go through there but equally it doesn't want to go down. There is some underlying support for the New Zealand dollar, it is caught between two close but opposing forces.
- Bancorp Treasury Services (based on TVNZ)
Pair's Outlook
Pair remains depressed under 88 cent mark. It is showing mildly bearish trend, but in our opinion it is more of a result of profit taking rather than a change in sentiment. We don't see the pair falling below the 87 mark in the nearest future and expect it to test the 88 cent mark in the medium to long term.
Traders' Sentiment
Bulls are remaining in absolute minority in the market as they continue to hold 27% of all of the open positions on the pair. In addition, today, for the first time in last week, bullish side of pending order fell below the 50% mark. It contracted by 15-30% and is at approximately 30%, depending on the range around market price.
© Dukascopy Bank SA