- Bancorp Treasury Services (based on The New Zealand Herald)
The currency pair edged down last Friday. Although the forecast stated a dip towards 0.75, the Kiwi actually closed the week at 0.7528. The proximity to the resistance trend-line has turned the tide for the New Zealand Dollar. The technical studies keep giving mixed signals, but we still expect the rate to be bearish. The 55 and 100-day SMAs, as well as the weekly S1, are not deemed to have the strength to stop the fall. The monthly S1 and the lower Bollinger band, on the other hand, might fortify the area around 0.7440 and prevent the downslide.
Market sentiment remains unchanged, with 72% of positions being short. Meanwhile, the number of buy orders slid from 44 to 36%.