© Dukascopy Bank SA
– David Croy, ANZ Bank New Zealand (based on New Zealand Herald)
Pair's Outlook
The Kiwi surged higher against the US Dollar on Friday, as some analysts explained it with profit taking. However, from a technical perspective the currency exchange rate has finally rebounded against the recently discovered large scale ascending channel pattern's lower trend line. As a result by mid-Friday the pair jumped from 0.7005 to 0.7055, where it was stopped by the weekly PP at that exact level. It is most likely that the rate will attempt to break through the pivot point and move on to the weekly R1 at 0.7108, as it is supported by the 200-day SMA just below it.
Traders' Sentiment
Traders remain bearish on the pair, as 57% of open positions were short on Friday. Meanwhile, trader set up orders remained strongly bullish, as 62% of pending commands were to buy the Kiwi.
© Dukascopy Bank SA