NZD/USD extends rally, set to erase weekly losses

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"A print at $4.25 [per kilogram of milk solids] or above will likely see further gains for NZD, and perhaps a sustained break of important resistance at 0.6580. Anything below $4.00, and we will likely see another test of 0.65." 
- Bank of New Zealand (based on The New Zealand Herald)

Pair's Outlook 
The New Zealand Dollar behaved according to the forecast, as it appreciated against its US counterpart. Furthermore, Wednesday's gains were negated and more ground for a rally today was built. The immediate resistance, namely the 20-day SMA around 0.6582, could be reached today, but overall gains are unlikely to exceed 0.66. Nevertheless, the weekly PP is providing the strongest resistance, as it prevented the NZD/USD from advancing in the beginning of the week. Meanwhile, technical indicators are now giving mixed signals, unable to confirm the forecast.  

Traders' Sentiment 
Slightly more traders have a positive outlook towards the Kiwi today, namely 45%, while the share of sell orders remains at 70%.
© Dukascopy Bank SA

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