Dukascopy - Analytics


    472.25 6.25/10
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    NZD/USD crumbles down to 0.6740

    © Dukascopy Bank SA
    "The FX market will likely start 2016 with a strong sense of deja vu, as many themes from last year remain firmly in place. Most notable are the monetary policy divergence led by the Fed, lower commodity prices and the role of a weaker China and emerging markets in the global recovery."
    - Barclays (based on Reuters) 

    Pair's Outlook 
    After reaching the highest level in ten weeks, the New Zealand Dollar began losing ground last week. The decline extended up till today as well, with the NZD/USD attempting to reconquer the 200-day SMA; however, the effort resulted in sharp slump towards the lowest level of the second support cluster, namely towards the weekly S3 at 0.6742. This level is the only obstacle on the Kiwi's path, preventing it from falling below 0.67 to the 55-day SMA and, eventually, to a retest of the up-trend.  

    Traders' Sentiment 
    The gap between bulls and bears narrowed, as 59% of all positions are short and the remaining 41% are long. At the same time, the portion of orders to buy the NZ Dollar declined from 42 to 40%.
    © Dukascopy Bank SA

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