- Westpac (based on The New Zealand Herald)
As was anticipated, the NZD/USD pair broke out of its trading range yesterday and put the second resistance area to the test. However, today this resistance failed to contain the volatility, allowing the rally to reach the resistance trend-line. Nevertheless, downside pressure was also strong, as the daily low was at 0.6585 dollars. Even if bulls push the Kiwi higher, the down-trend is likely to hold, as it kept the pair on the slide for two years now; and technical studies do suggest a surge towards it is possible. In case if the bears prevail, losses are unlikely to extend below 55 and 100-day SMAs.
Slightly more traders now have a positive outlook towards the New Zealand Dollar, namely 56% (previously 51%.).