© Dukascopy Bank SA
– John Kicklighter, Chief Currency Strategist (based on Daily FX)
Pair's Outlook
The Kiwi continued to depreciate against the US Dollar on Monday, as the currency exchange rate had reached below the 0.7150 level by mid-day on Monday. Previously, the currency pair began a fall on Thursday and did not stop it during Friday, as the rate fell below a support cluster comprised of the 20 and 100-day SMAs, respectively, at 0.7183 and 0.7192 and the monthly S1 at 0.7181. Moreover, Monday's trading started below the newly calculated weekly PP at 0.7171. It is most likely that the currency exchange rate will continue to fall, as the next support level is at 0.7134.
Traders' Sentiment
Traders remain bearish on the pair, as 56% of open positions are short. Meanwhile, pending commands are no longer neutral, as 61% of set up orders are to sell the Kiwi.
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