Dukascopy - Analytics

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    NZD/USD erodes resistance up-trend

    © Dukascopy Bank SA
    "Broad risk appetite continues to be on the defensive and we're seeing the usual suspects doing well."
    - Canadian Imperial Bank of Commerce (based on MarketWatch)

    Pair's Outlook
    The Kiwi was expected to undergo a correction in a more gradual manner—within the recently established channel. Right now, however, the pair is trading 80 pips above the upper boundary of the pattern, meaning there is very little chance that the pair will manage to come back under the trend-line. Nevertheless, this is still not a reversal, and as long as NZD/USD is fluctuating beneath the 200-day SMA (0.6720) and the 19-month down-trend (0.6750), our bias will remain negative.

    Traders' Sentiment
    Yesterday's bullish sentiment is nowhere to be found—the share of longs plummeted from 60 to 52%. In the meantime, the percentage of sell orders soared from 38 to 81%.

    © Dukascopy Bank SA

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