- ANZ Bank (based on The New Zealand Herald)
At the end of last week, the Kiwi breached through the weekly S2 and continued to decline. The Bollinger band barely managed to stop the fall, as the NZD/USD stabilised at 0.6677. Technical indicators retain their mixed signals today, but the NZ Dollar is still likely to suffer losses. The lower Bollinger band now acts as the closest support, but risks of falling towards 0.66 still persist. The major 0.66 level is bolstered by both weekly and monthly S1s, thus, this area is unlikely to be broken easily.
Bulls keep prevailing over bears, as 69% of all positions are long (previously 56%). The number of buy commands, however, lost ten percentage points. The orders now account for 53% of the market.