- ASB (based on The New Zealand Herald)
On Monday, the New Zealand Dollar outperformed its US counterpart, as it advanced 64 pips against it. As a result, the 2010 low was breached and the resistance around 0.6695 was tested. The weekly PP at 0.6588 is expected to be pierced this time and possibly even the monthly S1 at 0.6608 if the 0.66 obstacle does not prevent the rally. Furthermore, if the NZD/USD manages to stabilise above 0.6608 then the resistance trend-line of the channel pattern could cause the pair to bounce back if reached.
Slightly less traders have a positive outlook towards the Kiwi today, namely 59% of them. At the same time, there are now 27% of orders to buy the NZ Dollar, compared to 24% previously.