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"All the bad news has been priced in; As long as there's not much in the way of news and volatility dies off, the New Zealand dollar could retrench some of its recent decline."
- Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia (based on Bloomberg)
Pair's Outlook
The NZD/USD recovery was stopped today as the pair continued trading in a bearish trend. The currency couple approached the initial support level at 0.7512 today and a breach here would expose the next levels at 0.7417 (Lower Bollinger band) and 0.7369 (November 2011 low). At the same time, if the pair manages to bounce off the initial support level (0.7512), then 0.7685 could become the first target for bulls.
Traders' Sentiment
Being that the American Dollar remains the most popular currency, NZD/USD currency couple is overbought in SWFX market. Bulls constitute 60% and bears constitute 40% of the total amount of positions on the pair, respectively.
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