© Dukascopy Bank SA
- Brown Brothers Harriman (based on Bloomberg)
Pair's Outlook
Due to the Kiwi being a commodity-linked currency, the NZD/USD currency pair managed to retreat from intraday lows yesterday and end the day in the green zone with a 23-pip rally. The New Zealand Dollar, however, faces a strong resistance cluster, represented by the monthly S1, the 55-day SMA and the weekly R1, which will be difficult to pierce, especially if the fundamental data turns in the Buck's favour today. In this case, the weekly PP is unlikely to prevent the NZ Dollar from edging lower, which could also ultimately result in a slump under the 0.6760 mark, namely the lowest level in seven weeks.
Traders' Sentiment
Traders' sentiment remains unchanged since Monday, with bears still outnumbering the bulls by only 2% points. At the same time, the share of orders to acquire the Kiwi increased from 17 to 48%.
© Dukascopy Bank SA