- JP Morgan (based on FXStreet)
The NZD/USD rebound started earlier than anticipated, as the pair climbed up last Friday. The Kiwi managed to add 14 pips, despite some serious volatility to the downside. Technical indicators now have bullish signs, suggesting further rally. The weekly PP is expected to limit the gains at 0.7626. However, there is a possibility of the pair to slide down due to strong US fundamental data. Right now any fluctuations to the downside are limited by the 20-day SMA, but it will lack the strength to prevent the fall if it occurs.
Bears keep prevailing over bulls, as 75% of traders are now short the Kiwi, compared to 70% previously. The share of the buy commands decreased, as 46% of orders are now to buy the New Zealand Dollar.