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"If the market sentiment is shifting for the fiscal cliff, I think what it does is opens the opportunity for things like Fed policy, which is U.S. dollar bearish, to come to the forefront"
- Camilla Sutton, Scotiabank (based on Reuters)
Pair's Outlook
A recent breach of a bullish trend-line that has been respected by the market since mid-June proved to be false and NZD/USD has already returned within the upward-sloping channel. Nevertheless, the current position of the price is unstable and attainment of higher levels, such as 0.8202/18 and 0.8279/94, is required in order to claim that the pair has preserved its long-term bullish bias.
Traders' Sentiment
According to the SWFX sentiment index, only 28% of market participants presently hold long positions on NZD/USD, while the general attitude towards the kiwi is negative—72% of traders are bearish on it. However, there is a perfect equilibrium between pending buy and sell orders.
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