© Dukascopy Bank SA
- Toronto Dominion Bank (based on Bloomberg)
Pair's Outlook
The New Zealand Dollar prolonged its rally against the US Dollar on Tuesday, with the exchange rate nearing the 11-week resistance line. From the technical point of view, the NZD should bounce back from this trend-line and edge lower towards the closest support, namely the weekly R1 at 0.6885. On the other hand, weak US data could trigger a Kiwi buying spree, causing the given pair to not only break through the resistance line, but also put the second resistance area to the test, represented by the Bollinger band and the weekly R2 around 0.6965. Meanwhile, technical indicators are unable to confirm either scenario, suggesting that flat trade is also a possibility.
Traders' Sentiment
Today 61% of traders hold short positions (previously 55%). At the same time, the number of sell orders increased from 39 to 65%.
© Dukascopy Bank SA