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- Sam Tuck, ANZ (based on The New Zealand Herald)
Pair's Outlook
In spite of our expectations, the Kiwi managed to inch up over Monday. However, the nearest resistance, namely the weekly PP, was not reached, as the NZD/USD settled only at 0.6835. The pivot point is likely to cause the NZ Dollar to fall down again and extend the two-month downtrend. Although the July 2010 low is the closest support target, the New Zealand currency is likely to fall to the weekly S1 at 0.6761, or even a support cluster around 0.6730. Meanwhile, technical indicators keep emitting bearish signals.
Traders' Sentiment
Bulls keep growing stronger, as 64% of all positions are now long (previously 55%). At the same time, the number of commands to acquire the Kiwi increased from 50 to 72%.
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