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NZD/USD likely to sustain losses after strong rebound

© Dukascopy Bank SA
"Regardless of what he may or may not have said in the confidential meetings the press had no access to, in my view the reaction illustrates that the currency market is not yet ready to change over to more dollar strength, positive U.S. data or not."
- Commerzbank (based on CNBC) 


Pair's Outlook 
The New Zealand overperformed, as it soared beyond expectations yesterday. During the trading hours the Kiwi managed to reach the second resistance, but lacked the strength to trade around that level. As a result, the NZD/USD stabilised at0.7130, but with risks of falling back. Technical indicators keep giving bearish signs, while volatility already reached the weekly PP at 0.7089. Moreover, a possible resistance trend-line might force the pair to decline again, thus confirming the full-scale bearish trend.

Traders' Sentiment 
Traders' outlook towards the Kiwi improved, as 39% of positions are now long (previously 38%). Buy commands are now in the majority, accounting for 53% of the market, compared to 36% yesterday.
© Dukascopy Bank SA


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