- ASB Institutional (based on The New Zealand Herald)
As anticipated, the Kiwi plunged against the US Dollar. The NZD/USD pair ignored the support cluster at 0.7449 and declined 115 pips overall. Support was met at 0.7347, where the Bollinger band stands. Moreover, according to the technical indicators, which are bullish, the Kiwi is expected to surge on Monday, as a correction usually takes place after a strong move. Nearest resistance lies at 0.7445, represented by the monthly and weekly PPs.
Bears are winning over bulls in the SWFX market, where long positions account for only 26%. The number of the Kiwi purchase orders in the 100-pip range from the spot price takes only 28% of all orders.