NZD/USD indecisive before the trend-line

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"We understand that the carry-trade appeal of high-yielding currencies like NZD is once again being touted as a reason for their outperformance." 
- Bank of New Zealand. (based on The New Zealand Herald)


Pair's Outlook 
On Thursday, the NZD/USD pair climbed a little up, but was still unable to negate the losses suffered at the beginning of the week. The Kiwi gained only 25 pips and settled at 0.7573, making in the meantime a few attempts to challenge the resistance trend-line. As for Friday, a rally is expected, and the technical studies suggest the same outcome. The trend-line retains its role as a resistance level at 0.7619; however, we cannot rule of a dip to 0.75.

Traders' Sentiment 
Slightly less traders than yesterday have a negative outlook towards NZD/USD. Now 72% of positions are short. At the same time, the gap between the buy and sell orders narrowed, as right now 44% of commands are set to acquire the New Zealand Dollar.
© Dukascopy Bank SA

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