© Dukascopy Bank SA
- JPMorgan (based on CNBC)
Pair's Outlook
NZD/USD has already retrieved the pips lost over the weekend by swiftly recovering from 0.7820, but the pair stands on a shaky ground and we therefore anticipate a subsequent drop, down to 0.7740/16, an up-trend line that is reinforced by the weekly and monthly S1 levels. The sell-off has an increased probability of being initiated either at 0.7929 (weekly PP) or at 0.8037/33, the bearish resistance line.
Traders' Sentiment
It is becoming more and more popular among the market participants to go long on the New Zealand Dollar, even though the number of shorts (54%) in its crosses continues to exceed the number of longs (46%). NZD/USD is viewed in the SWFX marketplace as inclined to rally—57% of traders are bullish on it.
© Dukascopy Bank SA