NZD/USD slips through 20-day SMA

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The kiwi and the Aussie stand out as suffering from what looks like a sharp pull back in speculative positions. The trigger was the ADP news. You tend to see a bigger reaction to dairy news during the Asian session, so you might see sellers on any bounce in the kiwi." 
- Bank of New Zealand (based on The New Zealand Herald)


Pair's Outlook

The kiwi depreciates for a second day after touching the weekly R1 level at 0.8587. Today the pair slipped through the 20-day SMA at 0.8491 and the weekly pivot point at 0.8472. NZD/USD is in a very vague situation, its direction depends on how strong the bulls are, since area beneath the pivot point is totally empty with a support only at 0.8385, where the weekly S1 merges with 55 and 100-day SMAs.

Traders' Sentiment
Traders do not see any perspectives in kiwi's appreciation scenario, as the vast majority (73%) of positions are short on NZD/USD. Pending orders market is also bearish with 65% of orders waiting to sell the New Zealand Dollar.
© Dukascopy Bank SA

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