NZD/USD's rally proves to be resilient

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"NZD/USD remains well supported, finding its footing above the 100-day moving average. We'd be cautious on entering a short NZD/USD position just yet, and would wait to see clear signs of waning momentum. Our hunch is that NZD/USD continues to outperform in the near-term." 
- Raiko Shareef, BNZ (based on WBP Online)


Pair's Outlook 
Despite the New Zealand trade balance missing the estimate by a wide margin, the pair still managed to edge up. But the gains were insignificant, and the Kiwi remained relatively unchanged against the US Dollar. The daily technical studies remain mixed, but the worse-than-expected US fundamentals are likely to weigh on the Greenback. Thus, the rate will probably surge again up to the 0.7720, where a resistance cluster lies. 

Traders' Sentiment 
SWFX market participants' attitude towards the New Zealand Dollar worsened, as 31% of all positions are now long. Meanwhile, the number of buy orders decreased, allowing the bears to take over: 59% of traders are now willing to sell the Kiwi.
© Dukascopy Bank SA

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