- ANZ Bank New Zealand (based on The New Zealand Herald)
The New Zealand Dollar not only outperformed the US Dollar on Wednesday, but also reached the highest level in more than a week. The Kiwi encountered resistance near the 0.64 psychological level and, thus, closed slightly below. Nevertheless, the NZ Dollar remains strong as is expected to post gains for the third consecutive day, with the nearest resistance located around 0.6435, namely the Bollinger band and the weekly R1. A breach of this cluster could allow the NZD/USD to reach a new monthly high.
Market sentiment remains bearish, as 72% of traders hold long positions (previously 57%). The amount of sell orders keeps growing, as they take up 79% of the market today, up from 66% yesterday.