NZD/USD briefly surges

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"This will be a volatile summer. The debate about tapering by the Fed will not be resolved by Labor Day."
- BNY Mellon (based on Reuters)


Pair's Outlook

A test of the support at 0.7908/0.7885 initiated a 200-pip rally, but the down-trend resistance line, combined with the 20-day SMA and weekly R1, coped with increased demand for the New Zealand Dollar, returning it back to the mentioned area. We suspect that NZD/USD has the potential to go lower, to 0.7716; however, technical indicators are not in favour of this scenario.

Traders' Sentiment
The share of bullish towards NZD/USD traders remains unchanged at 56%, just as at the time of writing of the previous report, whereas the overall level of kiwi's popularity in the market in on the rise. The ratio between the buy and sell orders is also the same as yesterday—39% to 61%.
© Dukascopy Bank SA

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