© Dukascopy Bank SA
"The kiwi is likely to trade in a narrow range between 81.20 US cents and 82.20 cents over the next few days heading into the end of the year."
- HiFX (based on TVNZ)
Pair's Outlook
After four consecutive days of losses NZD/USD touched upon 0.8143/41, which triggered a short-squeeze that now may extend up to 0.8215/00. There the supply should halt the current advancement and push the currency pair closer to 0.8105/0.9099, as the bias towards the price will remain negative as long as the down-trend resistance line (in force since Oct 22) is intact.
Traders' Sentiment
An absolute majority of SWFX market participants expect the New Zealand Dollar to maintain its current course south—73% of the positions are short (74% a day earlier). Meanwhile, the portion of sell orders placed near the current trading levels plunged from 82% down to 75%.
© Dukascopy Bank SA