NZD/USD is restricted by the 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"In New Zealand, Finance Minister Bill English said the local currency is overvalued. Many export companies face challenges if the New Zealand dollar stays at 86 cents." 
- Bloomberg


Pair's Outlook

Last few trading sessions were unsuccessful for the New Zealand Dollar, as the value against the U.S. Dollar sharply dropped. However, today the depreciation of the pair is suspended by the 20-day SMA and the weekly S1 at 0.8446. On the other hand, a reverse to an appreciation is not very likely, since any upside movement would be bounded by the major resistance at 0.8477.

Traders' Sentiment
Traders are rather indifferent to recent changes in the market, as distribution of positions changes only fractionally. The majority of opened positions (74%) is allocated on the sell side and indicates expectations to experience a further depreciation. Pending orders market is slightly bullish, as 57% of orders are ready to sell the New Zealand Dollar.
© Dukascopy Bank SA

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