- Bank of New Zealand (based on The New Zealand Herald)
There were no surprises in the NZD/USD behaviour yesterday. The weekly S1 could not prevent the pair from falling deeper, as volatility stretched out even beyond the Bollinger band. Ultimately, the Kiwi closed trade just in front of the 0.73 psychological level. On Thursday, the NZ Dollar is likely to edge down again, as technical indicators are bolstering the negative outcome. The nearest support is located at 0.7288, the Bollinger band, whereas a drop down to the monthly S2 is also possible, if the US fundamental shows better-than-expected figures.
Bulls retreated again, as 49% of traders are long the Kiwi today, whereas the number of buy orders increased from 58 to 72%.