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    NZD/USD sets eye on 0.65

    © Dukascopy Bank SA
    "January's risk averse mood may or may not fade, but the absence of NZ inflation is an enduring theme which will keep the pressure on the RBNZ to consider easing. Add to that the weak outlook for NZ commodity prices (dairy supply high, demand low) and our bearish outlook for NZD/USD remains intact." 
    - Westpac (based on FXStreet) 

    Pair's Outlook 
    The New Zealand Dollar exceeded expectations yesterday, rising well above the target level. Ultimately, the NZD/USD closed trade between the first and the second resistances, but technical studies retain their distinctly bearish signals in the daily timeframe. Technically, the Kiwi should undergo a correction today and retreat towards the weekly PP or at least fall under the 0.65 major level; however, amid market uncertainty we could also see a rally up to the immediate resistance, namely the weekly R1 and the 100-day SMA, circa 0.6580. 

    Traders' Sentiment 
    Market sentiment remains bullish, now at 68% (previously 66%). The number of purchase orders also improved, surging from 46 to 61%.
    © Dukascopy Bank SA

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