NZD/USD tests 0.78

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The kiwi is therefore likely to remain under heavy selling pressure as markets will fear further intervention actions by the central bank."
- BK Asset Management (based on the New Zealand Herald)


Pair's Outlook
The NZD/USD cross has been on a down-trend lately and last week was not a exception; however, the pair managed to gain for two days out of five. The shorter term technical indicators are slightly bearish; although, there are no strong conviction. Moreover, even though the pair is trading near this year's low (0.7710) we do not think that it is the main short term target. Nonetheless, in case the pair appreciates above the 0.78 level then a consolidation might follow or possibly even a test of the weekly R1 at 0.7869.

Traders' Sentiment
The difference between the amounts of long (51%) and short (49%) positions remains negligible, meaning the sentiment is still neutral. In the meantime, the share of sell orders slid from 76% to 72%.
© Dukascopy Bank SA

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