© Dukascopy Bank SA
NZD/USD followed a lost-lasting bearish trend after it reached a three-year high of 0.8780 early May. The currency pair entered a downward sloping tunnel that took the instrument to a one-month low 0.8539 in the second part of May.
Now the pair is on the verge of penetrating the upper limit of the corridor that may lead to a breakout followed by a sharp rally. However, market players are not so bullish; in fact, the proportion of long positions on the SWFX is only slightly higher than the proportion of the short ones. Referring to technical numbers, we note that the indicators are mixed, sending ‘buy' signals for short and long terms and being bearish for medium term.
© Dukascopy Bank SA