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- Bank of Tokyo-Mitsubishi (based on WBP Online)
Pair's Outlook
Even in spite of Fonterra's forecast, the Kiwi failed to appreciate against the US Dollar on Wednesday. Volatility was limited by the weekly S1 from the upside and by the Bollinger band from the downside. The weekly S1 prevented the Kiwi's attempts to edge higher today, thus, the NZD/USD is expected to remain within the same trading range as yesterday. Nevertheless, we should not rule out the possibility of a rather sharp slump beyond the trend-line towards the 2009 Q3 low at 0.6195.
Traders' Sentiment
There are slightly less traders with a positive outlook towards the NZ Dollar today, namely 53%. There percentage of buy and sell orders barely changed, as 71% of commands are to go short the Kiwi.
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