- Bank of New Zealand (based on The New Zealand Herald)
The Kiwi managed to pierce the monthly S1 and negate Wednesday's losses yesterday; however, the 0.65 major level was not reached. Nonetheless, trade remains close to the psychological level, which kept the NZD/USD at bay for the past three days and is likely to turn the tables around today. The losses are expected to be limited by the support cluster around 0.6440, now represented by the monthly S1, weekly S2 and lower Bollinger band. A break under the support is likely to trigger a decline towards the major level of 0.64 and eventually to July 2009 low at 0.6190.
Today 64% of all positions are short, compared to 52% yesterday, while sell commands account for 82% of the market.