© Dukascopy Bank SA
— Doug Steel, Bank of New Zealand (based on New Zealand Herald)
Pair's Outlook
By the middle of Wednesday's trading session the New Zealand Dollar against the US Dollar managed to fall below the 0.70 mark and retrace back upwards. As the US Dollar surges against the Kiwi, it faces the 20-day SMA at the 0.70 mark, which is supported by two additional levels of significance. At the 0.6987 level the weekly S1 and the monthly S2 are both located at. However, it is most likely that the combined cluster will be passed, as fundamentals reveal that there is still strength incoming from the US Dollar.
Traders' Sentiment
Traders remain slightly bearish on the pair, as 51% of open positions are short and 53% of set up orders are to sell the Kiwi, favoring the US Dollar.
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