- Bank of New Zealand (based on The New Zealand Herald)
On Tuesday the NZD/USD currency pair surged more than 30 pips, amid a rebound in dairy prices. The first resistance failed to keep the NZ Dollar from advancing, but the second area succeeded. The cluster around 0.6635 is now providing immediate resistance, while the monthly PP took the role of the nearest support. However, demand around the monthly PP might not be sufficient to keep the Kiwi from depreciating further, as a fall in oil prices keeps weighing on the commodity currency. Meanwhile, technical indicators are giving mixed signals, suggesting the pair might end the day relatively unchanged.
Bulls and bears broke out of the equilibrium, with 55% of traders now holding long positions and the remaining 45% - short. The percentage of sell orders returned to its Monday's level of 70%.