© Dukascopy Bank SA
- ANZ Bank New Zealand (based on The New Zealand Herald)
Pair's Outlook
Although the NZD/USD currency pair tested the 0.63 major level last Friday, the day still ended with the Kiwi outperforming the US Dollar. The pair almost negated weekly losses, but the weekly and monthly PPs prevented the exchange rate from going higher. Today the NZ Dollar is expected to undergo a correction and weaken versus its US counterpart; however, the weekly PP and 20-day SMA form a rather strong support cluster around 0.6335, which could limit any downside volatility. A breach of this support should trigger a sharper decline towards the weekly S1 at 0.6278.
Traders' Sentiment
Bears keep growing stronger, as 55% of all positions are now short (previously 52%). The share of buy orders declined from 52 to 51%.
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