- ANZ Bank New Zealand (based on The New Zealand Herald)
Last Friday, the NZD/USD currency pair bounced off the channel resistance trend-line and declined towards the 2010 low once again. However, trade still closed slightly higher at 0.6570, as the pair was unable to breach the support for the second time that week. Even though the Kiwi was seen edging higher in the early hours today, a plunge is still expected to take place by the end of the day. Technical studies are bolstering the possibility of a negative outcome; thus, the 2010 low is likely to give in and allow the Kiwi to drop lower, but the losses should be limited by the 0.65 psychological level.
Bulls retreated once again, as only 40% of all positions are long. At the same time, the number of sell orders increased from 67 to 83%