© Dukascopy Bank SA
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
This week has been good for New Zealand Dollar's bulls once again. The Kiwi breached the monthly R1 and major level at 0.8704/00; however, it failed to hold its positions above these levels. If the Kiwi fails to recover, then the next target level (2013 high) is at 0.8677. At the same time this level might not be reliable as it has not played a big role in pair's previous movements. We expect the currency pair to depreciate towards the weekly PP at 0.8615.
Traders' Sentiment
After a slight drop (down to 72%) the percentage of short positions returned to its more familiar level—73%, meaning the sentiment is likely to stay bearish for some time. In the meantime, the share of sell orders slipped from 73% to 68%.
© Dukascopy Bank SA