© Dukascopy Bank SA
- RBS (based on CNBC)
Pair's Outlook
The NZ Dollar overperformed, as yesterday's growth exceeded the forecasted target of 0.6680, namely the weekly R1. Ultimately, the Kiwi settled above the 0.67 major level, but remained subject to weakness. The US Dollar is expected to exploit that weakness and push the New Zealand currency back down. The weekly R1 now acts as an immediate support, but a decline towards the 20-day SMA is more likely. Furthermore, we should not rule out the possibility of the NZD/USD slumping even towards the 0.66 psychological level.
Traders' Sentiment
Market sentiment weakened substantially, as 71% of traders are now short the Kiwi. At the same time, the buy and sell order ratio is equal to one.
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