- Bank of New Zealand (based on The New Zealand Herald)
The New Zealand Dollar succeeded in stabilising above the tough cluster around 0.6550 yesterday and is now aiming for the up-trend. Boosted by higher oil prices, the Kiwi ignored the up-trend and the 0.66 major level, precipitously rushing towards the second resistance cluster around 0.6640, namely the Bollinger band and the weekly R2. This is likely to prevent the NZD/USD from edging higher today, as technical studies retain mixed signals. As 55-day SMA's crossing of the 100-day one predicted this rally, which could extend until the pair reaches the October high of 0.6896.
The gap between longs and shorts is now only 8% points, with bulls in the majority. There are now 64% of orders to sell the NZ Dollar.