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– Graeme Wheeler, Reserve Bank of New Zealand (based on Bloomberg)
Pair's Outlook
As previously forecasted, the New Zealand Dollar surged on Tuesday against the US Dollar and met with resistance at 0.7347, where the weekly R1 is located at. The fall continued into Wednesday morning, as the currency exchange rate almost reached the weekly pivot point at 0.7256, but it changed direction at 0.7269. Afterwards, the rate once more surged and met with the previously mentioned resistance, and it changed direction. Due to the strength of the both of these levels, it is most likely that the rate will continue bouncing like a ping pong ball between them until the upper Bollinger band moves northwards and the 20-day SMA closes in from the south.
Traders' Sentiment
Traders are 71% short on the pair, and pending commands are 55% to buy on Wednesday.
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