NZD/USD negates most of last week's losses

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The US dollar remained on the back foot following further softness in US dataflow."  
- ANZ Bank New Zealand (based on The New Zealand Herald)


Pair's Outlook 
The Kiwi climbed as high as was foretold on Monday, with the weekly PP preventing further rally at 0.7626. The New Zealand Dollar was even able to reach the 0.7664 level during the trading session. Technical studies retain their bullish signals, suggesting a third consecutive surge today. The nearest resistance is now represented by the 200-day SMA; however, a more reliable level rests at 0.77, namely the monthly R1. The 200-day SMA should slow down the climb, making the NZD/USD pair settle around 0.7670. 

Traders' Sentiment 
Market sentiment remains bearish, but with 71% of traders being short the Kiwi. The portion of buy commands added 20 percentage points. Purchase orders now take up 66% of the market.
© Dukascopy Bank SA

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