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    NZD/USD probes 55-day SMA

    © Dukascopy Bank SA
    "The strong link between oil and currencies and equities continues, with lower oil prices overnight meaning weaker commodity currencies, a stronger yen and euro and lower equity prices."
    - Bank of New Zealand (based on New Zealand Herald)
     
    Pair's Outlook
    While there is a low possibility of NZD/USD stepping above the monthly PP and 55-day SMA at 0.6830, we should note that there is still plenty of room for the pair to rise up to the 38.2% retracement of the 2014-2015 decline. If the immediate resistance turns out to be insufficient to prevent further appreciation of the Kiwi, the rally will most likely extend towards the 0.7100-0.7150 area. Still, our current base case scenario is a slide down to 0.6550, so that the pair would complete its bearish correction within the ascending channel.
     
    Traders' Sentiment
    At the moment less people believe the New Zealand Dollar will increase in value than yesterday—41% versus 47%. Concerning the nearby orders, 56% are to buy and 44% are to sell the Antipodean currency.
     
    © Dukascopy Bank SA

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