NZD/USD turns the tables around

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Markets sold NZD on the view that the devaluation reflects a weaker Chinese economy and reduces Chinese purchasing power. The path of the RMB is now vital for the NZD." 
- ANZ Bank New Zealand (based on The New Zealand Herald) 

Pair's Outlook 
Upon reaching the third support in face of the weekly S1 yesterday, the Kiwi jumped slightly back up and stabilised at 0.6550, just ten pips off the predicted target. Today the New Zealand Dollar reached a fresh five-year low and rebounded afterwards, even negating two-week losses for a brief period. Although the bullish momentum eased, the NZD/USD currency pair is floating rather high at 0.6596, namely the 20-day SMA. The NZ Dollar is struggling to pierce this resistance, as it is reinforced by the 0.66 psychological level, therefore, trade is likely to close around 0.6580. 

Traders' Sentiment 
Bulls and bears broke out of the equilibrium, as 43% of positions are now long. Now 23% of orders are to buy the Kiwi, down from 44%.
© Dukascopy Bank SA

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