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- Sam Tuck, ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
The Kiwi experienced a sharp sell-off on Friday, falling back below the 0.67 major level. Furthermore, on Monday the NZD/USD opened with a relatively large bearish gap, with price unable to maintain trade above the psychological level of 0.66. The New Zealand currency is supported by a group of levels around 0.6550, represented by the monthly PP, the weekly S1 and the Bollinger band. Even though a rally today is possible, gains should be limited by the 20, 55, 100 and 200-day SMAs circa 0.6640. Technical indicators are unable to provide any clear sense of direction, but the bearish momentum remains the base case scenario.
Traders' Sentiment
SWFX traders' sentiment remains neutral, as 49% of all open positions are long and the remaining 51% are long. The number of sell orders, however, added extra 5% points, now taking up 70% of the market.
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