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- RBC (based on MarketWatch)
Pair's Outlook
The support at 0.8240/20, formed by the monthly pivot points and the 55-day SMA, appears to have stopped the downward momentum that has persisted since Jan 14. However, the kiwi still needs to close above 0.8285/62, then we may assume that the near-term downside risk has been neutralised. Nevertheless, the longer-term bias remains negative.
Traders' Sentiment
An overwhelming majority of the market participants stay convinced that the New Zealand Dollar will be unable to recover—at the moment 67% of positions are short on it. As for the orders placed on NZD/USD, equal amounts within 100 pips from the spot are to buy and to sell the currency.
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