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- UOB (based on FXStreet)
Pair's Outlook
Despite a dovish FOMC Minutes statement, the New Zealand Dollar was unable to post significant gains against the US Dollar yesterday. Volatility was contained by the 20-day SMA from the downside and the weekly PP from the upside, while the pair kept gravitating towards the monthly PP. The NZD/USD's volatility was rather high earlier today, but the monthly PP refuses to let the Kiwi go. A drop beyond the 0.68 major level is unlikely, as demand around it appears to be strong, but a price could still test the 20-day SMA around 0.6775 over the day. Similarly, if bulls take over as technical indicators suggest, price should close at the weekly PP at 0.6845.
Traders' Sentiment
Today 56% of all open positions are short (previously 54%), whereas the number of orders to acquire the Kiwi surged from 57 to 63%.
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