- Ashok Shah, London & Capital (based on CNBC)
Upon reaching the 20-day SMA at 0.6604 on Friday, the NZD/USD currency pair was pushed back, eventually resulting in a five-pip loss. Although the pair is supported by a group of important levels, such as the 55 and 100-day SMAs, a fall beyond 0.65 is expected. The Kiwi has already edged below this target, but is unlikely to touch the second support cluster around 0.6460, in spite of daily technical studies confirming the possibility the negative outcome. The bias remains bearish, but the exchange rate could still close above 0.65.
Today 57% of all positions are long and the remaining 43% are short. Meanwhile, the percentage of buy orders keeps declining, with 71% of all commands now to sell the Kiwi (previously 67%).