© Dukascopy Bank SA
- OMF (based on The New Zealand Herald)
Pair's Outlook
The Kiwi overperformed on Tuesday, as it pierced the target resistance and even tested the third one at 0.6690. However, a correction is likely to follow such a strong rally, with the exchange rate dropping to around 0.6645. The Bollinger band and the weekly R2 are providing support around this area, while the immediate resistance is represented by the weekly R3—the level that limited yesterday's volatility. Furthermore, just under the major level of 0.66 rests another strong cluster, which would require a strong impetus in order to get pierced.
Traders' Sentiment
Only 37% of traders now hold long positions (previously 54%). At the same time, the number of buy orders increased from 36 to 47%.
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