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- Tim Kelleher, ASB Institutional (based on New Zealand Herald)
Pair's Outlook
During the first half of Friday's trading session the New Zealand Dollar retreated from the high level scored against the US Dollar during Thursday's trading. By the middle of the day the currency exchange rate had fallen below the weekly R1, which is located at 0.6961, and touched the 0.6943 level. It is most likely that the rate will continue to fall, as that is expected by most market participants, and daily aggregate technical indicators support such a forecast. However, in such case the rate will face the combined support of the weekly PP and monthly S1 just above the 0.69 mark.
Traders' Sentiment
Traders continue to short the New Zealand Dollar, as 65% of traders had opened short positions. Meanwhile, 57% of trader set up orders were to sell the Kiwi.
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