- ANZ Bank New Zealand (based on The New Zealand Herald)
In spite of several signs pointing to a rally, the NZD/USD currency pair weakened on Tuesday, making it a third slump in a row. The three-month support trend-line was broken before reaching the anticipated 0.70 level. The Kiwi remains subject to downside risks, with the monthly R3 acting as the nearest support today. However, a much strong cluster rests around the 0.66 psychological level, but technical indicators imply that this area will not be reached. The end-case, nonetheless, remains a fall towards 0.67 dollars.
Bears lost some numbers, as 63% of all positions are now short, compared to 70% yesterday. Meanwhile, buy orders are barely outnumbering the sell ones, taking up 51% of the market.