© Dukascopy Bank SA
- UOB (based on FXStreet)
Pair's Outlook
The New Zealand Dollar was unable to climb over the monthly pivot point for the third consecutive time on Tuesday, resulting in a 24-pip loss against the US currency. Since the weekly PP prevented the NZD/USD pair from falling deeper down yesterday, demand around this area appears to be strong. Consequently, the Kiwi is expected to rebound today, but with the monthly PP at 0.7152 remaining intact and most of yesterday's losses being negated. Unfortunately, technical studies are unable to provide a confirmation for this outcome, as they keep giving mixed signals.
Traders' Sentiment
Bears grew in numbers over the day, as 70% of all open positions are now short (previously 64%). At the same time, only 53% of all pending orders are to sell the NZ Dollar, compared to 51% on Tuesday.
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