© Dukascopy Bank SA
- Royal Bank of Canada (based on Bloomberg)
Pair's Outlook
Apparently, NZD/USD's movement from 0.7720 has not yet run its course, but simply underwent a correction that took the rate below 0.8317/12 that initially was expected to weather the sell-off. The setback, however, has seemingly ended at 0.82, indicating the currency pair is now likely to follow the scenario implied by the daily and monthly technicals.
Traders' Sentiment
The shorts have dislodged the longs to the extent where the latter constitute merely a fraction of the whole market—26%. Accordingly, the sentiment to the currency pair is overwhelmingly bearish. This does not pertain solely to NZD/USD, right now the New Zealand Dollar is the least popular currency among the majors.
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