- ANZ Bank New Zealand (based on The New Zealand Herald)
The Kiwi tested the resistance cluster around 0.6380, represented by the weekly and monthly PPs yesterday, which caused the NZD/USD to extend its decline. Nevertheless, the 0.63 major level was not reached, as the Bollinger band slowed down the fall and appears to have provided sufficient support today to trigger a rebound. Immediate resistance remains at 0.6380, limiting the volatility to the upside; however, Tuesday's losses are still likely to be negated, amid a broadly weaker US Dollar today.
Bulls are outnumbering the bears once again, as 57% of all positions are now long, compared to 25% previously. Meanwhile, the percentage of orders to sell the Kiwi increased from 54 to 60%.