NZD/USD breaches the 200-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The bank will probably just reiterate that the currency is overvalued, but that New Zealand dollar strength will help to cap rises in inflation. Even through policy makers may stop short of shifting towards an explicit tightening bias, this means the policy statement should have a hawkish slant." 
- Citigroup (based on Bloomberg)


Pair's Outlook

After an attempt to breach the weekly PP level at 0.8247, today the price reverses and breaches the 200-day SMA at 0.8237. If this movement turns to be sustainable and the price remains beneath the 200-day SMA, the next support level would be the Bollinger band positioned at 0.8162. However, this settlement would mean a full trend's reverse, as the price would be beneath all the SMAs and PP levels.

Traders' Sentiment
Sentiments are slightly changed, as today SWFX market provides a 25% market share of bulls and 75% of bears. Placed orders market has 69% of sell orders and 31% of buy.
© Dukascopy Bank SA

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