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"The markets have been excessively pessimistic. […] We're seeing some buying back in the Aussie and kiwi because they've been falling too rapidly."
- Kengo Suzuki, foreign-exchange strategist at Mizuho Securities Co. (based on Bloomberg)
Pair's Outlook
NZD/USD bounced of the 0.7445/80 zone on easing worries over the Euro zone prospects after the EU members backed common EU bonds. For now, the bearish momentum remains strong, thus NZD/USD might test 0.7458 (Weekly S1) before diving further. Support levels at 0.7417 (Lower Bollinger band) and 0.7369 (November 2011 low) are going to be the next targets for bears.
Traders' Sentiment
Traders' sentiment is bearish on NZD/USD, since the share of long positions outweigh the number of short positions by 33%. Within 100-point distance from the latest market price, 70% of investors are expecting the pair to advance further.
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