NZD/USD focuses on retaking 0.63

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The market is very much focused now on this growing El Nino effect. There does appear to be a growing momentum behind that at the moment. It's a negative for the country. That means that the kiwi dollar remains under pressure." 
- OMF (based on The New Zealand Herald) 

Pair's Outlook 
The NZD/USD dropped only 21 pips on Monday, with volatility stretching out only to 0.6244. Judging by the previous several weeks, a slowdown in the fall as yesterday is likely to cause one or two-day rebound. As a result, the NZ Dollar is anticipated to retake the 0.63 psychological area and possibly even reach the immediate resistance at 0.6342, represented by the weekly PP. From below the pair remains supported by a strong cluster, which is still likely to cause a rebound once reached.  

Traders' Sentiment 

The share of bears remains unchanged at 53%. At the same time, there are slightly more commands to purchase to Kiwi, namely 32%, compared to 25% yesterday.
© Dukascopy Bank SA

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