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"The overall sentiment is likely to remain quite negative for both the Australian and New Zealand currencies."
- National Australia Bank Ltd. (based on Bloomberg)
Pair's Outlook
NZD/USD traded flat today after the release of disappointing macroeconomic figures. Support levels at 0.7470 (S1 Weekly) and 0.7417 (Lower Bollinger band) are going to be the initial targets in case bearish trend continues; however, near 0.7417/0.7368, a consolidation and further trend reversal is likely to happen as bears will face a fierce bullish resistance there.
Traders' Sentiment
NZD/USD currency pair is overbought to a large extent, since 74% of all the positions opened are long. Consequently, shorts constitute 26% of the market. Within 100 pips from the market price, bullish stance settles back with only 57% of market participants expecting NZD/USD to advance further.
© Dukascopy Bank SA