- Bank of Tokyo-Mitsubishi UFJ (based on Market Watch)
Upon reaching the 55-day SMA yesterday, the NZD/USD currency pair bounced back and closed trade slightly above the 0.67 psychological level. As a commodity currency, the Kiwi remains subject to weakness due to oil supply glut and a slowdown in the world's second largest economy. However, the New Zealand Dollar is now supported by a rather strong cluster, represented by the 55-day SMA, the monthly R1 and the up-trend. In case the up-trend is pierced, the second level to limit the losses rests at 0.6581, namely the 100-day SMA.
There was a significant surge in the trader's sentiment, as 72% of all open positions are now long, compared to 44% on Tuesday.