© Dukascopy Bank SA
"You'll get more exaggerated moves (from local data) from lower numbers than higher numbers in these key releases because of how much good news is fully price in the kiwi."
- HiFX (based on the New Zealand Herald)
Pair's Outlook
It seems that the pair has lost its bullish momentum and we saw a notable decline yesterday. Today NZD/USD prolonged yesterday's retreat and broke weekly PP and monthly R1 at 0.8525/18; however, it bounced back to trade around 2103 4Q high at 0.8543. In our opinion a further sell off is likely and the pair might slide towards 20-day SMA and later weekly S1 at 0.8463/45.
Traders' Sentiment
The gap between the amounts of long and short positions open on NZD/USD has remained unchanged since the previous report. Also the orders placed 100 from the spot have not changed much as 63% are set to sell, after yesterday's 62%.
© Dukascopy Bank SA