© Dukascopy Bank SA
- Barclays (based on Reuters)
Pair's Outlook
After reaching the highest level in ten weeks, the New Zealand Dollar began losing ground last week. The decline extended up till today as well, with the NZD/USD attempting to reconquer the 200-day SMA; however, the effort resulted in sharp slump towards the lowest level of the second support cluster, namely towards the weekly S3 at 0.6742. This level is the only obstacle on the Kiwi's path, preventing it from falling below 0.67 to the 55-day SMA and, eventually, to a retest of the up-trend.
Traders' Sentiment
The gap between bulls and bears narrowed, as 59% of all positions are short and the remaining 41% are long. At the same time, the portion of orders to buy the NZ Dollar declined from 42 to 40%.
© Dukascopy Bank SA