© Dukascopy Bank SA
- ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
Even though the New Zealand currency weakened against the US Dollar on Wednesday, the pair was able to stabilise on top of the 0.67 major level, rather than under it. This psychological support could cause the Kiwi to rebound, but the 20-day SMA around 0.6709 is providing immediate resistance. This leaves the door open for an eventual decline towards a tough cluster around 0.6620, while a seven-week up-trend is located just above 0.66. In case bulls manage to push the NZD/USD pair beyond the 20-day SMA, the second target will then be resistance, formed by the weekly PP and the monthly R1 at 0.6750.
Traders' Sentiment
Market sentiment remains neutral, being that 51% of all open positions are long and the other 49% are short. At the same time, the share of purchase orders dropped from 71 to 52%.
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