NZD/USD risks falling to 0.67

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Deutsche Bank has been very aggressive in its call for rates to be at 2.5 percent by the end of the year, which is another 75 basis points worth of cuts. It puts us back on a rate cut path. Because of that and lower yield, the money will go to markets with have got more liquidity for the same value." 
- ASB Bank (based on The New Zealand Herald) 


Pair's Outlook 
Although the NZD/USD fell under the weekly S1, the currency pair was pushed slightly back. Nevertheless, the Kiwi declined beyond the July 2010 low and stabilised at 0.6781. Technical indicators keep showing bearish signs in the daily timeframe, suggesting the NZ Dollar is to edge lower again, as the July 2010 low, along with the 0.68 major level, are now providing resistance. From below the New Zealand Dollar is supported by the weekly S1 at 0.6761, but a drop to 0.6730, where the lower Bollinger band lies, is more likely.

Traders' Sentiment 
Bullish market sentiment weakened, as only 54% of traders hold long positions (previously 64%). At the same time, the number of orders to acquire the Kiwi edged up from 62 to 64%.
© Dukascopy Bank SA

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