© Dukascopy Bank SA
– Philip Borkin, ANZ Bank OF New Zealand (based on New Zealand Herald)
Pair's Outlook
The New Zealand faced a strong resistance cluster against the US Dollar by mid-day on Wednesday, as the currency exchange rate attempted and failed to break through. The cluster is located from 0.7134 up to the 0.7211 level, and it is made up of the 38.20% Fibo, weekly R2 and R3 at, respectively, 0.7149 and 0.72112, the monthly PP at 0.7167 and the 55 and 100-day SMAs at 0.7185 and 0.7198. However, the cluster is set to break up into two smaller ones, as the monthly PP at 0.7167 will become obsolete tomorrow.
Traders' Sentiment
Traders continued to increase their bearish sentiment on Wednesday, as 63% of open positions were short. Meanwhile, trader set up orders shifted and became bearish, as 52% of them were set up to sell, compared to 60% to buy on Tuesday.
© Dukascopy Bank SA