© Dukascopy Bank SA
- Governor of the Reserve Bank of New Zealand (based on Bloomberg)
Pair's Outlook
NZD/USD slumped almost 150 pips today, after sliding just slightly one day earlier. The main catalyst for the pair's sharp drop was the informational shock that dragged the Kiwi considerably lower. Currently, the most reliable support levels ahead seem the weekly S3 and the major level at 0.7920/00 respectively. If this level does not hold then the decline could continue; however, we expect these supports to hold.
Traders' Sentiment
More and more traders consider the retreat in NZD/USD to be overstretched. Accordingly, the share of long positions grew from 56% up to 56%. The amount of the buy and sell orders are completely identical for the time being.
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