© Dukascopy Bank SA
- Westpac Banking Corp. (based on The New Zealand Herald)
Pair's Outlook
The RBNZ Governor's statement strengthened the New Zealand Dollar yesterday, allowing it to add 47 pips against the Greenback. As a result, the pair stabilised above the 55-day SMA and attempted to climb over the 0.72 major level, where the weekly R1 coincides with the 100-day SMA and the upper Bollinger band. However, the Kiwi lacked the strength to pierce the new resistance area and is now on the edge of partially erasing Wednesday's gains. The trend has been bullish for nearly three weeks now, despite some setbacks occurring once in a while; today can be another such setback.
Traders' Sentiment
Traders' sentiment remains bearish, with 70% of all open positions being short. At the same time, the number of orders to sell the NZ Dollar increased from 53 to 62%.
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