© Dukascopy Bank SA
- ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
Yesterday, the NZD/USD pair plunged down to the 200-day SMA. This level thought to be unreachable on Monday, but the Kiwi even managed to touch as far as 0.7640. The 200-day SMA provided excellent support and might do so again today, forcing the New Zealand Dollar to bounce back. The monthly R1 should limit any gains, which is the most likely outcome, while the weekly PP provides substantial support. Meanwhile, technical indicators are still giving off mixed signals, failing to confirm either scenario.
Traders' Sentiment
Market sentiment remained unchanged, with 73% of traders being short the Kiwi. The gap between the buy and sell commands narrowed, as 46% of orders are now to purchase the NZ Dollar.
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