© Dukascopy Bank SA
- OANDA (based on Business Recorder)
Pair's Outlook
The Kiwi sustained rather sharp losses on Wednesday, also falling below the 0.6760 mark, the level that kept the NZ Dollar elevated for six weeks. The NZD/USD currency pair is now facing a strong support area around 0.6710, represented by the weekly S1, the 100-day SMA and the Bollinger band, which, technically, should prevent the exchange rate from falling deeper. However, technical studies are giving bearish signals, suggesting that a drop lower is possible. In this case, the up-trend, bolstered by the 200-day SMA, the weekly and the monthly S2s, is to provide sufficient demand to trigger a rebound.
Traders' Sentiment
Market sentiment is bullish for the first time this week, with 55% of traders now holding long positions (previously 49%). The majority of all pending orders, on the other hand, is taking up 52% of the market.
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