Dukascopy - Analytics

Dukascopy

463.75 6.50/10
83% of positive reviews
Real

NZD/USD freefalls beyond 0.71

© Dukascopy Bank SA
"The damping effects" of a stronger [US] dollar "might be larger and longer-lasting than previously anticipated." 
- FOMC member (based on MarketWatch) 


Pair's Outlook 
Even though the New Zealand Dollar suffered losses yesterday, the fall was not as sharp as anticipated. During the trading session the Kiwi managed to reach the 0.71 psychological level, but stabalised higher at 0.7125. Technical indicators keep showing bearish signals, suggesting further weakness. As a result, the NZ Dollar is likely to pierce through the 2011 low again today and, possibly, stretch out to the 0.70 psychological level. If a plunge to 0.70 occurs, we might see the Kiwi drop to the August 2010 low within a week's time. 

Traders' Sentiment 
Bears keep prevailing over bulls, although 46% of traders are now long the Kiwi (previously 44%). The number of buy commands also increased. They now account for 56% of the market (up from 48%).
© Dukascopy Bank SA


To leave a comment you must be or register

By visiting our website and services, you agree to the conditions of use of cookies. Learn more I agree