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The New Zealand dollar is badly underperforming," Adam Button, a currency analyst at Forexlive.com in Montreal, said in a telephone interview. "We saw a knee-jerk reaction to buy U.S. dollars and sell commodity currencies after Bernanke's comments."
- Forexlive.com (based on Bloomberg)
Pair's Outlook
It seems that pair is somewhat stabilizing after a 200 pip dip in last few days. However, bearish directional impetus remains as pair is approaching yesterdays low/200-day SMA at 0.8219. If pair will not find support there we might see it slipping to 0.8115 Probability of such turn of the vents, however is rather low as weekly and monthly technicals point at recovery of the pair and daily Stochastic indicator suggest pair has reached turning point.
Traders' Sentiment
Short traders are giving up the ground further—only 69% of traders are remaining bearish on the pair. Pending orders, however, are almost equally divided between the bears and bulls.
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