Dukascopy - Analytics


463.75 6.25/10
83% of positive reviews

NZD/USD attempts to regain the bullish momentum

© Dukascopy Bank SA
"We expect the RBNZ to cut the OCR by another 50bp to 2.5% by year end (with more to come early 2016). Over the same period, we expect the Fed to hike by 50bp. Plugging these forecasts into a simple short term fair value model for NZD/USD suggests it should fall by 6%, from 0.66 to 0.62." 
- Westpac (based on FXStreet)

Pair's Outlook 
The NZD/USD currency pair declined for the sixth consecutive day on Tuesday, despite having reached the weekly PP at 0.6617. Technical indicators are now giving bullish signals, suggesting the Kiwi is to outperform the Buck today. The 0.66 major level will doubtfully be retaken, as the NZ Dollar fell only lower during the weak, after unsuccessfully attempting to reclaim the area. The nearest resistance now rests at 0.6590, namely the 20-day SMA, but it too might remain out of reach due to lack of market movers for the New Zealand Dollar. 

Traders' Sentiment 
Bearish market sentiment returned to its Monday's level of 57%, whereas there are still a lot of orders to sell the Kiwi, namely 74%.
© 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