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- Sheldon Slabbert, CMC Markets (based on The New Zealand Herald)
Pair's Outlook
The New Zealand Dollar behaved in accordance with expectations on Thursday, having reached the 0.72 major level. Consequently, the Kiwi is now expected to edge lower, as it was unable to pierce the resistance area above the 0.72 mark. The main target for the given pair is now the 0.71 mark, below which a tough demand area is located, formed by the weekly PP, the 55 and the 200-day SMAs. However, it is uncertain whether the NZ Dollar will be able to reach this area, as it has another support cluster on its way. Furthermore, technical indicators are unable to confirm the possibility of the negative outcome.
Traders' Sentiment
Bears remain in control, being that 65% of all open positions are now short (previously 66%). At the same time, the portion of sell orders doubled, now taking up 70% of the market.
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