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– Michael Johnston, HiFX (based on the New Zealand Herald)
Pair's Outlook
The New Zealand Dollar's surge to the upper trend line of the long term descending channel pattern against the US Dollar was hindered on Tuesday. The rate reached the weekly R1, which provided enough resistance to send the rate plummeting below 0.6970 level. Although the fall was stopped by a support cluster near the 0.6970 mark, the rate is still set to fall, as the US Dollar gains strength. If the rate falls below the 0.6950 level, it is set to sharply up to the 0.6883 level, where the next support level is located at.
Traders' Sentiment
SWFX trader sentiment remains bearish, as 58% of open positions were short on Tuesday. Meanwhile, trader set up orders are no longer neutral bearish. 61% of trader set up pending commands were set up to sell the Kiwi, compared to 51% on Monday.
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