© Dukascopy Bank SA
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
After slumping for three days in a row, the Kiwi managed to rebound from the ascending channel's support line yesterday, but with volatility limited by the 20-day SMA at 0.6881. The New Zealand Dollar is now expected to prolong its bullish momentum, therefore, reconfirm the lower boundary of the pattern. The 20-day SMA keeps providing immediate resistance, but if it fails to limit the gains, the NZD/USD currency pair is then likely to climb over the 0.69 major level and meet resistance at 0.6913, represented by the weekly PP. At the same time, weekly technical studies are in favour of this outcome.
Traders' Sentiment
Traders' sentiment remains unchanged, with bears taking up 74% of the market. The majority of pending orders, however, are now to sell the Kiwi, namely 52% of them (previously 39%).
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