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"A lower New Zealand dollar is desirable to boost tradables inflation and assist the tradables sector."
- Graeme Wheeler, RBNZ Governor (based on New Zealand Herald)
Pair's Outlook
Although NZD/USD managed to close the session under the channel up pattern's lower boundary (0.6860), on Thursday we have been observing a massive recovery of the New Zealand currency. The nearest daily resistance is implied by the weekly pivot point at 0.6913, but the NZD/USD is likely to remain bid until the weekly R1/upper Bollinger band at 0.6892/0.7005. This is where the pair is expected to fail, but future gains, even within the current channel, should prolong up to the recently-reached fresh April peak at 0.7053. In the meantime, an aggregate daily technical indicator is unchanged, but Stochastic has turned neutral and SAR is now signaling to the upside.
Traders' Sentiment
The bears (74%) manage to maintain a confident lead over their bullish peers and the same applies for pending orders in both ranges.
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