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- Tim Kelleher, ASB Institutional (based on New Zealand Herald)
Pair's Outlook
The NZD/USD pair appears to have begun its recovery slightly earlier than anticipated, as it failed to put the descending channel's support line to another test two weeks ago. Instead the Kiwi began moving higher, making its way to the first threshold—the 0.70 major level. The pair has one main resistance on its way, the monthly PP, which is also bolstered by the 20-day SMA today. Together they form a cluster above the 0.70 mark, but could prevent the NZ Dollar from moving higher. Prior to that the weekly R1 rests at 0.6983, but is unlikely to limit the gains once a substantial market mover emerges. Meanwhile, technical indicators are unable to confirm the possibility of the positive outcome.
Traders' Sentiment
Once again 66% of traders are short the Kiwi (previously 65%), whereas the number of buy orders edged up from 43 to 63%.
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