- Sam Tuck, ANZ Bank New Zealand (based on The New Zealand Herald)
The New Zealand Dollar oscillated between the 0.6565 and the 0.6620 levels on Monday, but closed trade at the same level where price opened. The bullish scenario is expected to prevail today, but the monthly PP right on top of the 0.66 major level could limit the gains, as the NZD/USD pair already retreated from its intraday day high of 0.6640. A tough resistance is located around that area, for a break of which the Kiwi lacks impetus. A possibility of another day of flat trade exists, as technical studies suggest. Meanwhile, the Bollinger band and the weekly S1 form a support cluster around 0.6560 in case bears manage to push the NZ Dollar lower.
Market sentiment is equally divided between bulls and bears, but the share of sell orders remains large—takes up 73% of the market.