NZD/USD bounces from 200-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The Kiwi got a lift first on the ANZ survey, and then on the capex report."
- Commonwealth Bank  (based on TVNZ)

Pair's Outlook

Pair dipped to 200-day SMA where it received a bullish impetus which helped it to close with minimal losses slightly above monthly S2 yesterday and allowed it to test 100-day SMA earlier today. The latter level, however, has stopped the pair, at least for the time being. Daily technicals suggest that pair should trade sideways for some time, but should fulfill the expectations of major market participants and return to 0.84 cent area in the medium and long term.

Traders' Sentiment

Overwhelming majority of traders are remaining short on the pair—75% to be more specific. In addition to this, every 2 out of 3 pending orders are to go short as well.

© Dukascopy Bank SA

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