© Dukascopy Bank SA
- ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
The Kiwi dropped as low as 0.6620, but closed trade near the target support area of 0.67. The spot price is now within the borders of the weekly S1 and monthly R3, but the path towards the 100-day SMA is even shorter. The cluster around 0.66, namely the weekly S2, 100-day SMA and monthly R2, is the key support, with the next even stronger cluster located around 0.65. Meanwhile, the monthly R3 is the only obstacle on the NZD/USD's way to returning to Oct high, which will fade away by the end of the week.
Traders' Sentiment
The gap between long and short positions narrowed. Now 59% of traders are short the Kiwi (previously 65%). Meanwhile, there are more orders to buy the NZD (45%), compared to 34% yesterday.
© Dukascopy Bank SA