- VantageFX (based on WBP Online)
The Kiwi edged higher towards the 0.65 psychological level on Tuesday, boosted by a rebound in commodity prices. The situation today is quite tricky. On one hand, technical studies retain bearish signals, while turmoil around the RBNZ possible rate cut today rises. In such case the lowest level to limit the dips is located around 0.6315, namely the monthly S3 and the Bollinger band. On the other hand, decision to hold rates unchanged might spark a rally up to the 100 or even the 55-day SMA, which are surrounding the 0.66 level. In any case, fundamentals are the main Kiwi/Dollar driver today.
Bullish market sentiment remains unchanged at 63%, whereas the number of sell orders increased from 53 to 56%.