"Right now, (traders) are probably waiting for the inauguration, to what type of speech President-elect Trump presents." – Joseph Trevisani, WorldWideMarkets (based on Reuters)
By mid-day on Tuesday the Kiwi had gained almost 100 pips against the US Dollar, as the NZD/USD exchange rate broke through all resistance levels, which could have stopped it.
However, the pair was eventually stopped by the weekly R1 at 0.7203. It is likely that the rate will continue its way upward after a slight period of consolidation.
Although, the pair will more likely be dictated by changes in fundamentals, as Donald Trump is about to be inaugurated, as President of the United States.
Ignoring the latest events, traders continue to short the Kiwi, as 65% of open SWFX positions are bearish. In the meantime, trader set up orders are almost neutral, as 51% of set up pending commands are to buy the New Zealand Dollar.
Provided by Dukascopy Bank