- CMC Markets (based on WBP Online)
The Kiwi suffered an 80-pip loss and even fell under the 2011 low last Friday. Moreover, even the 0.71 psychological level was crossed during the trading session, whereas more weakness is expected today. The Bollinger band shifted to 0.7069 and now acts as an immediate support; but the NZD/USD has a solid chance of plunging to 0.70, which is also bolstered by the weekly S1. Although daily technical studies remain mixed, the medium and longer term ones are still showing bearish signs, suggesting that the pair might reach an August 2010 low within a couple of weeks.
Bulls are now in the majority with 65% of all positions being long, while sell orders now take up 44% of the market (previously 59%).