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- TD Securities (based on Reuters)
Pair's Outlook
A continued decrease in oil prices caused the Kiwi to weaken against the US Dollar on Tuesday, but the pair managed to partially recover from its intraday low, amid poor US fundamentals. The NZD kept declining ever since it reconfirmed the resistance trend-line last week and today is unlikely to be an exception. In this case the bearish momentum could last until the exchange rate reaches the weekly S1 at 0.6724; however, technical indicators are still giving bullish signals in the daily timeframe, suggesting that the NZD/USD could recover. The weekly PP should then provide sufficient resistance to limit the gains, a breach of which might trigger a rally towards the resistance trend-line.
Traders' Sentiment
Bearish market sentiment remains unchanged at 54%, while the percentage of buy orders dropped 31 percentage points down to 57%.
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