- Bank of Tokyo-Mitsubishi (based on Business Recorder)
The New Zealand Dollar managed to break out of the descending channel, as a rally occurred yesterday. Gains were only limited by the third resistance level, namely the 20-day SMA, which is expected to be pierced today. As a result, the new target is now the weekly R1 at 0.6680, despite that technical indicators are showing mixed signs in the daily and weekly timeframes. However, worse-than-expected US fundamentals might even push the NZD/USD towards the 0.67 major level, leaving the door open for July 2010 low to be retaken.
Slightly more traders now have a positive outlook towards the Kiwi, namely 42% of them (previously 40%). Meanwhile, there are also more orders to acquire the NZ Dollar, 32% to be exact, up from 17%.