- Westpac (based on WBP Online)
Last Friday New Zealand Dollar rebounded, but, as anticipated, was unable to pierce the weekly R1. Eventually, the NZD/USD pair settled at 0.7558. This week NZD/USD is set to test the weekly pivot point, as technical indicators are giving bearish signals on the hourly and four-hour time frames. Nonetheless, the daily and weekly studies are strongly bullish, suggesting more upside momentum for the Kiwi. Gains are likely to be stopped by the 55-day SMA at 0.7590.
Positive market sentiment is slowly gaining ground, as 43% of all positions are now long. Meanwhile, the number of orders to acquire the Kiwi in the 100-pip range from the spot slumped down to 46%.