Dukascopy - Analytics

    Dukascopy

    485.50 6.00/10
    83% of positive reviews
    Real

    NZD/USD stuck between 20 and 55-day SMAs

    © Dukascopy Bank SA
    "Robust U.S. domestic demand growth remains the main driver of U.S. economic activity and justifies a December Fed funds rate increase. Still, we expect the Fed's tightening cycle to be gradual which will limit significant USD upside." 
    - Commonwealth Bank (based on Business Recorder) 


    Pair's Outlook 
    The Kiwi also benefited from rising commodity prices yesterday and, thus, outperformed the US Dollar. The immediate resistance cluster was pierced, but the target, namely the 20-day SMA, was not reached. Today the New Zealand Dollar is supported by the same cluster, while the 20-day SMA is providing resistance. However, the closest resistance will doubtfully hold the pair from surging in case the US fundamentals disappoint, leaving the door open for the down-trend to get tested. Positive data, on the other hand, is likely to push the NZD/USD back under 0.65. 

    Traders' Sentiment 
    Although not as strong as yesterday, but market sentiment remains bullish at 53%. The share of buy orders declined from 43 to 33%.
    © Dukascopy Bank SA

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