- Westpac (based on FXStreet)
Yesterday the New Zealand Dollar was able to stabilise above the weekly PP, thus, getting a chance to appreciate again today and reach the July 2010 low. The closest resistance is located just under the 0.69 psychological level, represented not only by the July 2010 low, but also by the upper boarder of the descending channel. After today's rally the NZD/USD is still expected to edge lower next week, as this strong resistance cluster should force the Kiwi to bounce back. Meanwhile, technical indicators retain their bearish signals, unable to confirm the forecast.
Bulls slightly retreated, as 57% of traders hold long positions today, compared to 61% yesterday. Sell orders remain unchanged at 81%.