© Dukascopy Bank SA
- IMF (based on Bloomberg)
Pair's Outlook
The NZD/USD pair suffered substantial losses on Monday. The 55 and 100-day SMAs and the weekly S1 lacked the strength to stop the Kiwi from falling. After testing 0.7420, the New Zealand Dollar settled at 0.7460, short of the predicted level of 0.7440. On Tuesday, despite the technical studies either pointing in different directions or being neutral, a rebound is expected to occur. The weekly S1 is unlikely to halt the rally, so we see the pair ending the day either around 0.7500 or 0.7520.
Traders' Sentiment
Even less people are confident in the Kiwi today, with 74% of traders being short. The gap between the buy and sell commands narrowed, as 45% of them are to acquire the currency (previously 36%).
© Dukascopy Bank SA