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    NZD/USD breaks moving averages en route to 0.6650

    © Dukascopy Bank SA
    "Declines in the prices for New Zealand's main exports are clearly negative for the currency, but investors are probably under-accounting for the degree of support for NZD afforded by buoyant risk appetite and yield seeking."
    - Citi (based on CNBC)

    Pair's Outlook
    NZD/USD is rapidly recovering after a test of the monthly S1. The pair managed to pierce through a combination of the 55 and 100-day SMAs, which paved the way for a rally towards 0.6650, where we expect the Kiwi to probe the falling resistance line it has established in October. However, further extension of the move will be unlikely, considering that most of the daily and monthly studies imply that the risks are heavily skewed to the downside.

    Traders' Sentiment
    There are relatively less bulls in the market than yesterday, but they still take up the majority, namely 56%. On the other hand, there is substantial potential for the selling pressure to intensify, considering that the portion of sell orders near the spot jumped from 50 to 67%.

    © Dukascopy Bank SA

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