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- Societe Generale (based on FXStreet)
Pair's Outlook
As was anticipated, the New Zealand Dollar outperformed its US counterpart on Tuesday, with gains limited by the 0.69 major level, between the 20-day SMA and the weekly PP. The bullish momentum appears to have lost steam and a decline is expected. Immediate support lies around 0.6870, namely the 20-day SMA and the ascending channel's support line. A close above 0.6857 would preserve the channel pattern, but risks of a breach are growing, with the second level to limit the dips located at 0.6814 in face of the monthly PP. Technical indicators, however, are giving mixed signals, creating a possibility of a bullish outcome.
Traders' Sentiment
Today 73% of traders hold short positions, opposed to 74% on Tuesday. Furthermore, 85% of all pending orders are to sell the NZ Dollar.
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