© Dukascopy Bank SA
"The NZD/EUR looks set to bounce early this week, given ECB president Draghi's EUR-negative comments over the weekend."
- Bank of New Zealand (based on the New Zealand Herald)
Pair's Outlook
The Kiwi is consolidating around the weekly PP at 0.8669, after last week, when the pair set a new more than a three year high at 0.8745. We expect a bearish movement from this currency pair, as in our opinion it is over-valued. Most likely the pair could depreciate towards the major level and weekly S1 at 0.8600/0.8593; although, the technical indicators suggest pair's advance.
Traders' Sentiment
Bearish side of open positions returned to 73% level today; down from 75% on Friday. Concerning the orders placed 100 pips from the spot, there are now significantly more commands to buy – 61% compared to Friday's 48%.
© Dukascopy Bank SA