© Dukascopy Bank SA
- Tim Kelleher, ASB Institutional (based on New Zealand Herald)
Pair's Outlook
Yesterday the Kiwi suffered another setback in its recovery, having lost 20 more pips against the US counterpart. Fortunately for the New Zealand Dollar the weekly PP managed to limit the losses yesterday. However, due to a small bearish gap today, the NZD/USD pair opened below the weekly PP, which is now providing immediate resistance. As a result, the Kiwi is expected to struggle to post gains today, and technical indicators suggest the same. The closest area to stop the losses lies only at 0.6880, as it kept the NZ Dollar afloat for more than two weeks now and is now also bolstered by the weekly S1.
Traders' Sentiment
There are 67% of traders holding short positions today, compared to 66% on Monday. The number of purchase orders increased over the day, namely from 63 to 64%.
© Dukascopy Bank SA