© Dukascopy Bank SA
- ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
On Tuesday, the New Zealand Dollar soared versus the US Dollar. The pair outstripped all expectations, as it went through all of the nearest resistances. However, the Kiwi stabilised at 0.7721, after reaching a two-week high at 0.7740. A correction is likely to take place today, while technical studies retain their mixed signals. A fall back towards 0.77 is the most probable outcome, although the first two supports lack the sufficient strength to prevent the decline, thus the 200-day SMA is the worst-case scenario target. Nevertheless, we should not rule out the probability of a climb to 0.7750.
Traders' Sentiment
The portion of short positions remained unchanged at 71%, while 54% of commands are now to purchase the Kiwi (previously 66%).
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