- Bank of New Zealand (based on The New Zealand Herald)
As expected, the US Dollar slumped against its New Zealand counterpart. The Kiwi gained twice as much as it lost on Tuesday; however, the 50% Fibonacci retracement and weekly R1 prevented the currency from advancing further. Meanwhile, the technical indicators are emitting bullish signals, thus the NZD/USD cross is expected to extend its rally, unless Friday's US data show improvement. Closest resistance now shifted to a cluster of important levels around 0.7624.
Market sentiment still stays on the bearish side, as 42% of positions are long. Nonetheless, the sell orders are in the majority, accounting for 53% of all pending orders in the 100-pip range.