- OMF (based on The New Zealand Herald)
The weekly S3 at 0.6742 succeeded in holding the NZD/USD currency pair from falling deeper on Monday, despite volatility stretching out to 0.6719. Today the Kiwi found itself in a rather grim situation, as the monthly PP, the 20-day SMA and the weekly S2 form a cluster, which is weighing on the NZ currency from the upside, providing strong resistance. Meanwhile, the weekly S3 just below the spot price is unable to hold the losses, as the support is not bolstered by any other level. As a result, trade could close at 0.67 or even below this major level.
The gap between bulls and bears keeps narrowing, as 56% of all open positions remain short, compared to 59% on Monday.