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    NZD/USD to undergo a correction

    © Dukascopy Bank SA
    "In light of the latest disappointing economic data releases Fed Chair Yellen is likely to strike a more dovish tone today weighing further on the US dollar." 
    - Bank of Tokyo-Mitsubishi (based on WBP Online)


    Pair's Outlook 
    The NZD/USD currency pair was not an exception and also took advantage of the weak US fundamentals on Friday, having edged significantly closer to the 0.70 mark, also making it a fourth rally during the previous week. The Kiwi is now expected to experience a setback in its recently-acquired bullish trend and undergo a corrective decline. In this case the Bollinger band at 0.6915should succeed in keeping the NZ Dollar from sustaining sharper losses, with a possibility of a drop towards the 0.69 mark present. However, technical indicators are unable to confirm this outcome, as they retain mixed signals. 

    Traders' Sentiment 
    Although not as strong as on Friday, market sentiment remains bearish at 57% (previously 70%). At the same time, the portion of orders to buy the New Zealand currency increased from 38 to 52%.
    © Dukascopy Bank SA

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