- Westpac (based on Scoop)
The NZD/USD did not surprise with its performance at the previous week's end. The given pair inched down 12 pips until the monthly S1 managed to stop the decline. Today the New Zealand Dollar is likely to experience more weakness, as the technical studies in the daily timeframe suggest. Volatility to the upside has already been prevented by the weekly PP at 0.6929, forcing the Kiwi to start falling again. Immediate support is now located around 0.6840, represented by the weekly S1 and Bollinger band. Moreover, by the end of this week the NZ Dollar could even reach the July 2010 low.
Market sentiment improved, now taking up 53% of the market. The portion of orders to acquire the Kiwi, however, slid from 58 to 57%.