© Dukascopy Bank SA
- ANZ Bank New Zealand (based on the New Zealand Herald)
Pair's Outlook
The Kiwi is starting to show some bearish signs; nevertheless, it has rather reliable support (the 20 and 55-day SMA; monthly PP) at 0.8612/24. We think if this support level is breached then most likely a drop will follow, the Kiwi could reach the weekly S1 at 0.8559 or even the major level at 0.85 eventually. Although, most likely scenario is that the pair will be pushed higher and it will break the weekly PP at 0.8669. Also the technical indicators support an advance.
Traders' Sentiment
An overwhelming majority of the SWFX market participants consider the Kiwi to be overvalued relative to the greenback. Right now 74% of market participants are bullish.
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