- Schroders (based on WBP Online)
The New Zealand Dollar behaved according to the forecast yesterday, as it pierced the support cluster around 0.69 and even tested the weekly S1 at 0.6876. Nonetheless, the NZD/USD currency pair is expected to rebound on Thursday, amid the weekly S1 providing sufficient support. The immediate resistance around 0.69 is unlikely to prevent the rally, whereas the target for today is the retake of the August 2010 low. Technical indicators, however, retain their mixed signals in the daily and weekly timeframes.
The gap between bulls and bears slightly narrowed, as 42% of traders hold long positions today (previously 41%). At the same time, the share of purchase commands slid from 67 to 51%.