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- Rabobank (based on Bloomberg)
Pair's Outlook
Although the Kiwi experienced substantial volatility on Thursday, it still managed to remain completely unchanged against the US counterpart, leaving its consolidation trend intact. The New Zealand currency is expected to remain relatively flat for the third consecutive day, but seen as technical studies retain their bearish signals, the 100-day SMA, which kept the pair elevated for three weeks now, now risks being pierced. However, the 100-day SMA is also reinforced by the weekly S1, making the immediate support area even stronger. In case the cluster is pierced, the next target will be the area around 0.6650, represented by the up-trend, the 200-day SMA, the weekly and the monthly S2s.
Traders' Sentiment
There are 55% of traders holding long positions today, unchanged since Thursday; there are also 55% of all pending orders to sell the NZ Dollar.
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