- Credit Suisse (based on Reuters)
After fluctuating around the 0.66 major level, the NZD/USD still ended last week with a shift to the downside. Right now the pair is seen trying to edge higher, but unable to overcome the 0.66 psychological area. One of the reasons that is preventing the Kiwi from appreciating higher is the 20-day SMA resistance, which lies at 0.6607. Nevertheless, the New Zealand Dollar is still expected to decline towards the 2010 low once again, in spite of technical indicators mostly having neutral signals.
Market sentiment remains bearish, with 57% of all positions being long (previously 59%). The number of sell orders added ten percentage points. The commands now take up 72% of the market.