© Dukascopy Bank SA
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
The NZD/USD currency pair surprised with its performance on Monday, having unexpectedly recovered from its intraday low and posted a five-pip gain. However, yesterday's inability to edge lower does not mean the Kiwi is to keep outperforming the US counterpart. Technical indicators still suggest the pair is to decline, with the main target being the weekly S1 and the 200-day SMA cluster around 0.7060. At the same time, a number of levels are weighing on the New Zealand Dollar from above, making it difficult for a bullish development to take place. The base case scenario is a close somewhere between the 0.71 and 0.7170 levels.
Traders' Sentiment
Market sentiment remains bearish, with 64% of traders holding short positions. Meanwhile, the portion of sell orders surged from 46 to 51%.
© Dukascopy Bank SA