NZD/USD prolongs its decline

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The recent sideways consolidation in NZD/USD has given way to a downside breakout. The 85.15 level will now reverse roles and serve as initial resistance."
- RBC Dominion Securities Inc. (based on Bloomberg)


Pair's Outlook
The Kiwi extended its yesterday's decline and is trading around the weekly S2 at 0.8451. We expect a further retreat towards the major level at 0.84 that will be driven by pair's bears. Even though at the moment the pair is on a downtrend the weekly and monthly technical indicators expect an advance. If the pair approaches the major level at 0.84 then we expect it to consolidate there; although, a rebound towards the weekly S2 could be possible.

Traders' Sentiment
Market sentiment remains unchanged as bears continue to hold 63% of all of the open positions on the pair. Bullish side of pending orders, also did not change and is at 51-69% gauge today depending on the range.
© Dukascopy Bank SA

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