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"We're still optimistic on the big U.S. dollar outlook. Markets are coming to the conclusion that the Fed on Thursday is unlikely to deviate from the business-as-usual approach which they've had since December --that it's based on the data, that it's going to be gradual normalization."
- Sam Tuck, ANZ Bank New Zealand (based on Bloomberg)
Pair's Outlook
Despite the fact that NZD/USD has recently broken out of the bearish channel to the upside, the currency pair does not seem to be in a hurry to advance further north. At the same time, the technical indicators in the weekly and monthly time frames are mostly pointing south. Still, there is a dense demand area between 0.6640 and 0.6600, where the bulls could try to revitalise the latest attempt to recover. If this is not the case, however, the price will be set to slide down to the seven-month up-trend at 0.6480.
Traders' Sentiment
The difference between the amounts of bullish and bearish market participants remains insignificant—merely eight percentage points in favour of the former. The portion of the sell orders went from 40 to 59% compared to the yesterday's reading.
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