- Bank of Tokyo-Mitsubishi (based on WBP Online)
The Kiwi performance over Wednesday fell in line with expectations, as the NZD/USD currency pair weakened and closed trade between the 100-day SMA and the lower Bollinger band. The given SMA should cause the NZ Dollar to rebound and retest the weekly S1, ultimately reaching the resistance trend-line again, but risks of the pair plunging again persist. The next target after the nearest support, namely 100-day SMA, is pierced is the 55-day one around 0.6517, which could then lead to a slump towards the Sep low and even the 2009 Q3 low at 0.6195.
Traders are confident in the Kiwi, as 67% of all positions are long. The share of sell orders barely changed, increasing from 62 to 63%.