- ANZ Bank New Zealand (based on The New Zealand Herald)
The monthly S1 lacked the strength to stop the Kiwi from falling on Monday. As a result, the NZD/USD pair lost 77 pips and is likely to fall again. The outlook towards the NZ Dollar remains bearish, despite that today's surge almost negated Monday's losses. The volatility is expected to shift to the downside, stretching out towards a support cluster around 0.7325. Meanwhile, technical studies retain bearish signals in the daily timeframe, bolstering the negative bias.
Bulls lost more ground over the day, as only 44% of traders are long the Kiwi now (previously 49%). The portion of buy commands lost three percentage points. They now take up 66% of the market.