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"Anything that looks to be supportive of Spain and Italy in raising funds is going to be positive. As long as these headlines continue to come out with this sort of flavor, we can see the Aussie and kiwi get squeezed a bit higher."
- Scotiabank (based on Bloomberg)
Pair's Outlook
NZD jumped higher today against the US dollar and the pair is currently hovering near 0.7970 level (200-day SMA). If bullish momentum stengthens, 0.8082 (Upper Bollinger band) is likely to become the second resistance for bullish investors. A breach here would expose the third resistance at 0.8148 (R3 Weekly).
Traders' Sentiment
SWFX marketplace traders' sentiment on NZD/USD didn't change much compared to yesterday and currently it is neutral as almost 50% of currency traders hold short positions and 50% of traders keeping long positions. However, the allocation of orders indicates that 75% of market participants expect NZD/USD to continue rallying further.
© Dukascopy Bank SA