- Nomura Securities (based on Reuters)
On Wednesday, the New Zealand Dollar edged down again, maintaining the six-week bearish trend. However, the Kiwi experienced substantial volatility, but remained relatively unchanged by the end of the day. The strong cluster around 0.7225 provided strong support, which might finally cause the NZD/USD currency pair to rebound. Technical studies remain mixed in the daily timeframe, but the weekly ones retain bullish signals. In the worst-case scenario the pair could reach the 2011 low, but most likely it is to settle around 0.7175.
Bulls retreated, as 52% of all positions are now long, compared to 54% yesterday. The share of buy orders decreased from 69 to 43%.