- Commonwealth Bank (based on CNBC)
The NZD/USD almost completely erased Tuesday's losses yesterday, but the immediate resistance proved to be impenetrable. The pair once again faces this cluster today, namely the weekly PP, the 55 and the 100-day SMAs around 0.6635. In case bulls manage to push the Kiwi higher—the 200-day SMA circa 0.6672 is expected to finish the job and prevent further appreciation. Technical studies support the possibility of the bullish outcome; however, the supply area could still push the NZ Dollar back down towards the up-trend, which in turn is reinforced by the 20-day SMA at 1.6581.
Market sentiment improved, as 59% of all open positions are long (previously 48%). The number of buy orders surged from 23 to 60%.