NZD/USD settled at the weekly PP

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The fall in inflation expectations knocked us back this morning."
- a dealer at an international bank in London (based on Reuters)


Pair's Outlook 
The NZD/USD barely changed on Monday, as the market reaction was similar to Friday's, but negative. Nevertheless, the pair settled at 0.7521, represented by the weekly pivot point. Technical indicators are giving mixed signals, but on the longer time frame remain negative. The Greenback is expected to rise this week, hence, its New Zealand counterpart is likely to slump. Nearest support lies among a cluster of significant levels between 0.7472 and 0.7410.

Traders' Sentiment
Bears still prevail over bulls, as 63% of all positions are short. At the same time, the number of buy orders in the 100-pip range accounts for only 33%.
© Dukascopy Bank SA

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