- Bank of New Zealand (based on The New Zealand Herald)
The NZ Dollar almost fell in line with expectations, as it declined against the US Dollar at the end of last week. The Kiwi reached 0.73 psychological level, but stabilised slightly under at 0.7296, erasing all Thursday's gains. On Monday, the NZD/USD pair is likely to fall down again. The lower Bollinger band is now the closest support, but the cluster around 0.7230 provides stronger support. Meanwhile, technical indicators keep giving bearish signals, bolstering the negative outcome in the daily timeframe.
The percentage of long positions increased, as 60% of traders are now long the Kiwi. At the same time, buy commands broke out of the equilibrium, now accounting for only 43% of the market.