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- Michael Johnston, HiFX (based on New Zealand Herald)
Pair's Outlook
On Wednesday the Kiwi began to lose its previous gains against the US Dollar, which were scored in the 1.5% surge, which occurred on Tuesday. The rate is likely to fall until the 0.7160 level, where the first monthly resistance level is set to provide support to the currency exchange rate. However, as this is just a consolidation move, during which profit taking occurs, most likely the New Zealand Dollar will resume its surge against the Greenback after encountering support at 0.7160. In that case the rate will once more face the first weekly resistance level at 0.7203.
Traders' Sentiment
The bearishness prevails, as 68% of SWFX traders have open short positions. In the meantime, trader set up pending commands are neutral.
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