© Dukascopy Bank SA
- Jason Wong, currency strategist (based on Bank of New Zealand)
Pair's Outlook
The Kiwi continues its way back up against the US Dollar, as the rate reached back to the channel upward pattern's middle after almost touching the lower trend line in the middle of this week. Mid-Friday the currency pair already hit and reached above the combined resistance of the weekly R1 and upper Bollinger band at 0.7347. The rate is set to move back up to the cluster and break to it to continue its path to the monthly R1 at 0.7392. The surge is also supported by the daily aggregate technical indicators.
Traders' Sentiment
Traders remain largely bearish on the pair, as 72% of open positions are short. In the meantime, pending orders are no longer almost neutral, as the short commands have taken over and 65% traders expect the rate to fall.
© Dukascopy Bank SA