© Dukascopy Bank SA
- a trader at a European bank (based on CNBC)
Pair's Outlook
The resistance, consisting of the weekly and monthly R1, was insufficient to halt yesterday's advancement. As a result, NZD/USD is closing in on the next area at 0.8161/26, which in turn safeguards the 200-day SMA at 0.8233. However, there is a low probability of the long-term moving average being tested any time soon, the Mar low at 0.8161 is likely to cap the price and initiate a sell-off.
Traders' Sentiment
Despite the kiwi posting large gains yesterday and carrying on with the upward tendency today, the portion of the bulls in the market contracted by merely two percentage points and is now 45%. As for the traders' intentions with respect to NZD/USD, three out of four are planning to sell the New Zealand Dollar, the remaining 25% are willing to buy it.
© Dukascopy Bank SA