© Dukascopy Bank SA
"Forward guidance may increasingly have to focus on the dangers associated with inflationary undershoots than on growth overshoots in the coming months, implying lower interest rates for longer, particularly in the U.S. and the euro zone."
- HSBC (based on CNBC)
Pair's Outlook
NZD/USD has just eroded the support area at 0.8215/00, which consists of the important in the past highs and lows and the monthly PP. Consequently, the price is now likely to fall down to 0.8105/0.8077, where it will encounter the long-term moving average and the lows seen in the last quarter of 2012. The demand there should be sufficient to limit the losses and turn the currency pair around, as was the case a month ago.
Traders' Sentiment
The difference between the longs and shorts remains stable—48% in favour of the latter. Meanwhile, the ratio between the orders is volatile and is noticeably skewed in favour of the sell ones, which presently account for 82% of the total amount in the 200-pip range.
© Dukascopy Bank SA