- Bancorp Treasury Services (based on The New Zealand Herald)
The NZD/USD currency pair almost fell in line with expectations. A sharp fall occurred, as the pair almost reached the 2011 low at 0.7114. The Bollinger band, however, provided support, causing the pair to stabilise at 0.7181, just six pips away from the target. Today the Kiwi is likely to suffer a third more than 50-pip loss this week. The 2011 low remains the target, but the Bollinger band, now around 0.7143, might limit the slump one more time. Technical indicators retain mixed signals in the daily timeframe, unable to confirm the bearish scenario.
Bears are now in the majority, as 57% of traders hold short positions. Meanwhile, 59% of orders are now to acquire the Kiwi.