- Westpac (based on WBP Online)
Although the NZD/USD pair's volatility stretched out to 0.7363, ultimately, the NZ Dollar spiked substantially. The Kiwi almost managed to erase all last week's losses, but the 55-day SMA, along with the weekly R1, stopped the pair from advancing. Today the New Zealand Dollar faces the same resistance cluster, while technical indicators retain bearish signals, suggesting a slump. Nonetheless, we still expect the Kiwi to maintain its bullish momentum, but with the trade likely to close around 0.7550.
Bulls shifted to the majority, as 52% of traders are long the NZ Dollar today, compared to 30% yesterday. However, the majority of all commands are now to sell the NZ currency, namely 55% of them.