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– Commerzbank (based on Reuters)
Pair's Outlook
On Monday the New Zealand Dollar managed to add 22 pips against the US currency, with attempts to breach the nearest support and resistance both failing. The NZD/USD pair has been trading within an ascending wedge pattern basically since the beginning of the year. Rising wedges tend to end with downside breakouts, which is close to what was happening on Friday. Nevertheless, the pair could still preserve the pattern if another rally today takes place and is sufficient to at least reach the second resistance, formed by the 20-day SMA and the weekly R1. A failure to return within the wedge's borders is likely to eventually lead to a drop towards the May low of 0.6677.
Traders' Sentiment
Bears are still in the majority, taking up 59% of the market (previously 61%). The share of sell orders dropped significantly from 85 to 51%.
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