The New Zealand Dollar is currently the most hated currency, as investors are the shortest ever on the NZD. However, the NZDUSD pair refuses to decline to new lows and therefore odds are building up for a short-covering rally heading into November.
On Wednesday, the NZDUSD pair was 0.20 per cent during the London session, trading at around 0.6540.
There is a short-term bullish trend line on the two hour chart, currently near 0.6535 and while above, the immediate outlook seems bullish. The resistance seems to be at around 0.6570, where the Kiwi has already failed a couple of times. Breaking above would confirm the bullish momentum, targeting previous swing highs near 0.6610.
On the downside, if the trend line is broken, we could see further consolidation, with the first target for bears probably at around 0.6510.
Sentiment appears to be positive on Wednesday as stocks rose sharply on Tuesday and are higher today as well, which could benefit the NZDUSD pair.
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Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
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