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Pair's Outlook
Although the 200-day SMA managed to limit the NZD/USD's volatility yesterday, trade still closed ten pips lower. Nevertheless, the pair experienced a rally and is likely to prolong its bullish trend today by piercing the 200-day SMA. Consequently, the second area to provide resistance rests around 0.6875, represented by the weekly R1 and the Bollinger band; while the Oct high is not far off—at 0.6896. At the same time, the weekly pivot point is the closest support, but there are no signs of a possible decline today.
Traders' Sentiment
On Tuesday 60% of traders hold short positions, compared to 57% yesterday. The gap between buy and sell orders narrowed, as 58% of all commands are to sell the Kiwi and the remaining 42% - to buy.
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