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- Societe Generale (based on Reuters)
Pair's Outlook
The New Zealand currency was pushed even further down yesterday, with trade ultimately closing just under the immediate resistance. Consequently, the same level, namely the monthly R1, continues to provide resistance today, while the top floor is located at the 0.69 level, represented by the Oct high, the weekly R2 and somewhat the 200-day SMA. Losses, however, should be limited by the 0.6645 mark, where the 20-day SMA coincides with the 55-day one, but a sharper sell-off towards the 100-day SMA is not out of the question if the Fed's statement turns out to be hawkish.
Traders' Sentiment
Bears are dominating over bulls, as 63% of all positions are short. Meanwhile, the portion of sell orders takes up 70% of the market.
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