- Kit Juckes, Sociiete Generale SA (based on Bloomberg)
The New Zealand Dollar rebounded yesterday and even put the second resistance level, namely the 200-day SMA, to the test. However, upon reaching that area again today, the NZD/USD currency pair bounced back and kept declining, while an increase in oil prices failed to support the Kiwi. The closest support is providing insufficient demand to limit the dips, therefore, a slump to the up-trend is not out of the question. The support line, in turn, is reinforced by the monthly PP and the weekly S1, reducing the chances of the NZ Dollar falling beyond 0.6550.
Today 55% of traders hold long positions, whereas the portion of orders to acquire the NZD dropped from 55 to 42%.