- Bancorp Treasury Services (based on The New Zealand Herald)
The New Zealand suffered losses yesterday, as technical studies suggested. The Kiwi was unable to maintain its position above the 0.7525 resistance cluster, which forced the NZD/USD pair to fall down. The 100-day SMA barely managed to stop losses, as they are also expected today. The nearest support now rests at 0.7470, represented by the weekly PP, but a stronger level lies at 0.7413, the monthly S1. Nonetheless, we expect the NZ Dollar to close trade around 0.7450, while technical indicators are bolstering this bias.
Market sentiment among SWFX traders worsened again, as short positions are now in the majority of 52%. Meanwhile, the portion of orders to purchase the Kiwi increased from 45 to 72%.