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– Kymberly Martin, Bank of New Zealand (based on New Zealand Herald)
Pair's Outlook
The Kiwi reached the 38.20% Fibonacci retracement level at 0.7134 against the US Dollar by the middle of Thursday's trading session. The reason for that was Trump and the fact that during his yesterday's speech he gave no details regarding fiscal policy. As by the end of the surge the rate encountered the Fibonacci retracement level's resistance, it is most likely that a retreat of the New Zealand Dollar will begin, as the US Dollar regains its strength against the Kiwi. In such a scenario the rate would fall to the 200-day SMA, which is located at 0.7088.
Traders' Sentiment
Traders continue to short the Kiwi, as 62% of open positions were bearish on Thursday. Trader set up pending commands remained unchanged, as 53% of trader set up orders were to sell.
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