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– Tim Kelleher, ASB Bank (based on New Zealand Herald)
Pair's Outlook
The Kiwi surged against the Greenback by mid-day on Tuesday, as the currency exchange rate once more attempted to pass the 0.71 mark. The main resistance, which prevents the currency exchange rate from surging above the 0.71 level, is the weekly R1 at 0.7097. Previously, during Monday's trading session the currency exchange rate was stopped by the previously mentioned resistance level and traded between it and the weekly PP at 0.7035. However, the situation is about to change, as the 200-day SMA is moving in from the downside, and is most likely to propel the rate above the 0.71 mark.
Traders' Sentiment
Traders remain bearish on the pair, as 61% of open positions were short on Tuesday. In the meantime, 60% of trader set up orders were to buy the Kiwi.
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