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- Rivkin Securities (based on The Business Times)
Pair's Outlook
Even though the New Zealand Dollar edged lower against the US Dollar last Friday, its performance is quite similar to the Aussie's today. The Kiwi received a boost from rising oil prices and is now on the path to completely erase Friday's losses. Moreover, technical indicators are also in favour of the positive outcome now. As a result, attention should be paid to the second resistance cluster, located just above the 0.72 major level. This area is expected to keep the NZD/USD currency pair at bay and possibly causing trade to close even below 0.7180—the psychological mark that the Kiwi was unable to overcome last week.
Traders' Sentiment
Market sentiment remains bearish, with 70% of traders holding short positions today. Concerning the pending orders, there are now 60% to sell the NZ currency, compared to 46% on Friday.
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