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- BMO Capital Markets (based on Reuters)
Pair's Outlook
The New Zealand Dollar surprised with its performance on Thursday, as it not only negated the previous two-day losses, but also breached the immediate resistance cluster and even tested the second one. Technical studies are now giving bearish signals in the short, medium and long terms, suggesting the Kiwi is to suffer losses over Friday. As a result, we could expect a decline towards the 0.63 psychological level, as it is reinforced by the weekly S1 and somewhat by the 20-day SMA, which altogether should limit the fall.
Traders' Sentiment
Market sentiment shifted to the bearish side, with 52% of all positions being short, compared to 47% yesterday. Meanwhile, the portion of purchase orders increased from 29 to 52%.
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