© Dukascopy Bank SA
- Bank of New Zealand (based on The New Zealand Herald)
Pair's Outlook
The New Zealand Dollar plunged more than 50 pips against its US counterpart on Monday, amid a oil prices declining that day. Today risk-off sentiment returned to the markets, cause more NZD/USD weakness. The closest support is represented by the monthly PP at 0.6814, but a slump much deeper is expected. The second area to limit dips lies around 0.6759, namely the 20-day SMA, however, a fall beyond this area is also possible, despite technical indicators giving bullish signals. Overall, the bearish momentum is expected to last until the up-trend around 0.6640 is reached.
Traders' Sentiment
There are now 54% of traders being short the Kiwi, compared to 52% on Monday. Meanwhile, the percentage of buy orders returned to its last Friday's level of 88%, up from 78% yesterday.
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