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    NZD/USD to bounce back from channel's upper boarder

    © Dukascopy Bank SA
    "The New Zealand dollar held onto its post RBNZ gains. Ultimately we expect NZD/USD to trade lower because the central bank could still lower rates." 
    - BK Asset Management (based on The New Zealand Herald) 

    Pair's Outlook 
    Although the Kiwi experienced strong volatility to the upside, the day still ended with the NZD/USD remaining flat. The NZ Dollar, therefore, remained within the borders of the descending channel; thus, giving indications of a decline today. The two immediate support levels, namely the monthly S1 and weekly PP, are unlikely to stop the pair from falling. As a result, the New Zealand currency has a solid chance of dropping towards the 2010 low, and possibly even beyond it. Meanwhile, technical studies are showing bearish signals, confirming a decline is the base-case scenario. 

    Traders' Sentiment
    Bearish market sentiment returned to its Wednesday's level of 52%, while the number of buy orders dropped from 37 to 33%.
    © Dukascopy Bank SA

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