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"More important for the euro is that the ECB will keep monetary policy extremely loose. Any bounce in the euro is a chance to go short. The euro will fall back to $1.20 in a year's time"
- Barclays (based on CNBC)
Pair's Outlook
The bearish bias for the pair persists as investors anticipate further appreciation of the US dollar in relation to the New Zealand dollar. However, if the pair attempts to initiate a bullish reversal, the first target for the bulls will be placed at 0.7715 (upper resistance line). If NZD/USD manages to hold above that level, it will signal a change in the momentum.
Traders' Sentiment
The portion of bulls on NZD/USD has soared up to 55% from 51% at the time of the previous measurement, while bears currently constitute only 45% of the market—the majority of market participants expect the pair to recover over the short run.
© Dukascopy Bank SA