Technical Analysis: NZD/USD retakes 0.67

Mon, 28 Mar 2016 13:33:52 GMT
Source: Dukascopy Bank SA

© Dukascopy Bank SA

“The dollar will be highly sensitive to U.S. data this week ahead of payrolls. The dollar is prone to react more to positive U.S. economic news.”
– Ueda Harlow Ltd. (based on Bloomberg) 

Pair’s Outlook 
The NZD/USD currency pair retreated upon reaching the 20-day SMA on Friday , while positive US GDP data caused the NZ Dollar to edge 20 pips lower. The Kiwi is now set to retake the 0.67 psychological level, with the closest obstacle located only around 0.6715, represented by the weekly PP and the 20-day SMA. On the other hand, a decline towards the 55 and the 100-day SMAs circa 0.6630 is not out of the question, as technical indicators are giving mixed signals. A drop lower is unlikely, as an eight-week up-trend there is bolstered by the monthly PP and the 200-day SMA just on top of the 0.66 mark.

Traders’ Sentiment 
For the fourth consecutive time bulls are outnumbering the bears by only two percentage points. At the same time, the number of orders to buy the Kiwi declined from 68 to 58%.

© Dukascopy Bank SA

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