© Dukascopy Bank SA
- ANZ (based on Business Recorder)
Pair's Outlook
Tuesday's rally caused the New Zealand Dollar to break through the upper border of the broadening rising wedge pattern, rather than a rebound and an eventual breakout through the lower boundary. The NZD/USD currency pair's volatility was only limited by the third resistance area, namely the Bollinger band, the weekly R2 and the monthly R1, where supply remains solid today as well. Consequently, the Kiwi is now expected to bounce back, risking to close below the 0.70 major level, as the closest support is located only at 0.6982, represented by the weekly R1.
Traders' Sentiment
Bears remain strong, with 70% of traders holding short positions. At the same time, the number of orders to acquire the NZ Dollar added 12 percentage points. The orders now take up 66% of the market.
© Dukascopy Bank SA