Talking Points:
- NZD/USD Trades Flat in 97 Pip Range
- Sentiment Totals are Relatively Neutral with SSI Reading at +1.22
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The NZD/USD has bounced modestly for today’s trading, but much like the USD/CAD and other commodity currencies the Kiwi remains range bound. So far this daily range measures 97 pips, and has been developing over the last 8 trading days. Resistance for this range is found at the March 20th high of .7089. Support is alternatively found near today’s low of .6992.
With today’s price action testing support, traders may elect to trade this daily range as long as prices continue to respect the previously mentioned values of support and resistance. However in the event of a breakout, traders may consider concluding any range based positioning and place new entries with the developing trend. Traders may use a 1x extension of the 97 pip range to find preliminary bullish breakout targets near .7186. Alternatively, bearish breakout targets may be considered near .6897.
NZD/USD, 95 Pip Daily Range
Current sentiment totals for the NZD/USD read relatively flat, with SSI currently at +1.22. This reading shows that 55% of traders are net-long the NZD/USD, with 45% positioned short. If range bound market conditions continue, it would be reasonably expected to see SSI figures remain flat for the pair. In the event of a bullish breakout however, it would be expected to see SSI flip to a negative value. Alternatively in the event of a bearish breakout, traders should look for sentiment figures to reach positive extremes of +2.0 or more.
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--- Written by Walker, Analyst for DailyFX.com
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