© Dukascopy Bank SA
"The Reserve Bank believes that, from a long-term perspective, the exchange rate is overvalued. The high exchange rate is contributing to economic imbalances and the Reserve Bank would like to see it lower in order to promote more sustainable economic growth."
- Reserve Bank of New Zealand (based on The Star)
Pair's Outlook
Pair initially stalled at the 100-daY SMA, but picked up the pace today and is continuing to erode support levels. At the moment it is aiming at monthly S1 and weekly S2 located around 81 cent mark. If this support fails we expect it will not be before long the monthly S2 will be tested. In case of an unexpected recovery the pair should return at least above the 20-day SMA.
Traders' Sentiment
Bulls are loosing ground further. Bullish side of pending orders decreased by further 4% (11% in the last few days) and at the moment is at 59% gauge. In addition to this, bearish side of open positions increased by 3% and is at 73% level.
© Dukascopy Bank SA