NZD/USD trades just beneath weekly S1

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The kiwi essentially was bought up on all those rate hikes and if you take half a per cent off you have got to consider its correction is appropriate for that."
- OMF (based on Bloomberg)


Pair's Outlook
The pair fluctuated between the weekly PP at 0.8575 and weekly S2 at 0.8451 this week. Now it is trading at the lowest level since early March and it is possible that the Kiwi will slip even lower towards the major level at 0.84. The short term technical indicators also suggest that the pair might weaken. Nevertheless, we do not suspect the pair dropping beneath the 0.84 level. For pair's bulls there might be some movements to the north if the pair closes above the monthly S1 and major level at 0.8499/0.8500.

Traders' Sentiment
At the moment of writing 63% of the SWFX market participants are expecting the Kiwi to lose value against the greenback. In the meantime, the share of buy orders remained unchanged at 59%.
© Dukascopy Bank SA

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