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- Credit Agricole (based on CNBC)
Pair's Outlook
Due to the Fed's dovish statement on Wednesday, the New Zealand currency soared against the US Dollar, completely negating this week's losses. The weekly PP at 0.6725 managed to provide sufficient resistance to hold the gains yesterday, but this level is being ignored today. The NZD/USD pair now aims to retake the second resistance area, located around 0.6830, in face of the Bollinger band and the weekly R1. A close at this area will mean establishing a new 11-week high, while a breach is to set the Kiwi on the route towards retaking the Oct 2015 high of 0.6896.
Traders' Sentiment
There are now 52% of traders holding short positions (previously 48%). At the same time, buy and sell orders now take up 30% and 70% of all pending orders, respectively.
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