© Dukascopy Bank SA
NZD will fall "over the next couple of months." In the short term, "the risk is for a bigger squeeze higher. It's going to be a very, very sharp toy later this week."
- National Australia Bank Ltd. (based on Bloomberg)
Pair's Outlook
NZD/USD keeps consolidating between 0.68 and 0.67, and we need a close below the lower boundary in order to confirm near-term bearish outlook. Attention will then be on the 100-day SMA and monthly R2 100 pips to the south. Another important support is one more handle away, at 0.65, where the 55-day SMA merges with the monthly R1 and weekly S3. The long-term negative outlook is ensured by the key resistance at 0.70, represented by the 200-day moving average.
Traders' Sentiment
Bears keep ousting bulls: they now take up 65% of the market. Moreover, most of the orders set near the current price are to open shorts, namely 66%.
© Dukascopy Bank SA