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"The continued moderation in U.S. rate expectations continues to leave the [US Dollar] on the defensive."
- CIBC (based on MarketWatch)
Pair's Outlook
The falling resistance trend-line and the 200-day SMA between 0.67 and 0.6760 seem unlikely to let the New Zealand Dollar to appreciate more than it already has. Therefore, we are likely to return back to the trend-line that was established during the second half of January, namely to 0.6550, where support is also strengthened by the monthly pivot point. Meanwhile, a close above 0.6760 will suggest a move towards the October high at 0.6896.
Traders' Sentiment
The sentiment among the SWFX market participants deteriorated, but still remains neutral—54% of open positions are short and 46% are long. In the meantime, the portion of sell orders soared from 47 to 70%.
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