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"We expect the US dollar to continue to recover and for downward pressure on commodity currencies to continue."
- ANZ (based on New Zealand Herald)
Pair's Outlook
Although there was still some room for recovery, NZD/USD failed to extend the rally up to the 200-day SMA and violated the accelerate up-trend support line it had been forming since the end of September. Accordingly, there is a good chance of a decline through the monthly R3 down to 0.66, where demand is implied by the monthly R2 and 100-day SMA. However, if the currency pair still manages to gain a foothold above 0.69, the focus will shift to the key resistance at 0.70 (200-day SMA).
Traders' Sentiment
The sentiment is less bearish than before the weekend: the portion of bears contracted from 61 to 58%. Nevertheless, more people plan to go short (78%) than to go long (22%).
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