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- Sheldon Slabbert, CMC Markets (based on The New Zealand Herald)
Pair's Outlook
Strengthened by Yellen's comments the US Dollar outperformed the New Zealand Dollar, causing the pair to almost completely erase all Tuesday's gains. The pair dropped back under 0.7140, meaning it is once again located in front of the resistance cluster, formed by the 38.20% Fibo, the 100-day SMA and the monthly R1; however, this area is unlikely to be of any use in limiting the gains today. The 0.72 mark, on the other hand, is providing relatively strong psychological resistance, not to mention it being reinforced by the upper Bollinger band and the weekly R1. Technical studies also suggest the Kiwi is to edge higher today.
Traders' Sentiment
Today 66% of traders are short the NZ Dollar (previously 68%), whereas 65% of all pending orders are to purchase the Kiwi, up from 50%.
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