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- IG Markets (based on The New Zealand Herald)
Pair's Outlook
The NZD/USD currency pair behaved in accordance with expectations yesterday, as it edged higher and closed at the 12-week resistance line. The Kiwi retained its Monday's strength from rising oil prices and continued to kept outperforming the US currency since the beginning of the day. As a result, the nearest resistance area, namely the up-trend, risks getting breached, as the pair maintains trade above the 0.70 mark. The second resistance from here is the cluster around 0.7040, where supply might be sufficient to partially negate intraday gains.
Traders' Sentiment
Bears keep dominating the market, as 71% of all open positions are currently short (previously 60%). At the same time, the number of orders to purchase the Kiwi dropped 10% points, down to 54%.
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