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- RBC Capital Markets (based on MarketWatch)
Pair's Outlook
As the Kiwi slumped for the third consecutive day last Friday, the Bollinger band prevented the NZD/USD from edging lower again. Furthermore, the 0.70 major level was easily breached and the pair even tested the August 2010 low at 0.6948. Today the NZ Dollar is likely to decline beyond the mentioned low and stabilise around 0.6940, namely between the lower Bollinger band and the Aug 2010 low. At the same time, technical indicators are showing mixed signals, unable to confirm or refute the outcome.
Traders' Sentiment
The gap between bulls and bears narrowed, as 47% of all positions are now long (previously 44%). Meanwhile, the number of orders to acquire the Kiwi increased from 34 to 43%.
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