NZD/USD: unexpected outcome

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target."
- Glenn Stevens, RBA Governor (based on The New Zealand Herald)


Pair's Outlook 
In spite of bullish signs, the NZD/USD started the trading week with a plunge. The Kiwi opened trade at 0.7552 and went through the weekly PP level, which failed to stop the pair. Furthermore, the New Zealand Dollar lost twice the amount of what it took to decline from the opening price to the weekly PP. Today the technical studies also suggest a bullish outcome; however, there are also no significant US data to interfere with the pair's behaviour. Nearest resistance remains the same 55-day SMA, as weekly PP proved to be unable to influence the rate's movement. 

Traders' Sentiment 
Percentage of longs declined to 29%, whereas the portion of commands to buy the Kiwi surged from 46% to 57%.
© Dukascopy Bank SA

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