© Dukascopy Bank SA
"We expect the NZD to remain elevated, rather than extend further, supported by domestic pillars."
- ANZ Bank New Zealand Ltd. (based on Bloomberg)
Pair's Outlook
For the past week or so pair was capped by the monthly R2 and 20-day SMA. Start of this week kept the pair in the same range. Short term technicals suggest that the pair has propensity to demonstrate a major rally and we think that only 20-day SMA could provided the needed impetus for that. In such case, pair should advance above 0.837 in order to eliminate possibility of another dip.
Traders' Sentiment
Situation with the kiwi from the perspective of market sentiment is completely opposite to the one with the other oceanic currency—the aussie. In case, market sentiment is strongly bearish with a 71% gauge of short positions. However, 59% of pending orders are set in favour of the bulls suggesting we might see some changes in the nearest future.
© Dukascopy Bank SA