- Derek Mumford, Rochford Capital Pty (based on Business Recorder)
Yesterday strong demand at the monthly PP caused the Kiwi to trim losses against the Buck and edge closer to the 20-month resistance line. Technically, the NZD/USD pair should not turn around and approach the 0.6630 mark, but technical indicators imply that the NZ Dollar is likely to climb higher for the third consecutive day. Apart from the down-trend, the closest area to limit the gains rests around 0.6740, represented by the Bollinger band, the weekly and the monthly R1s. At the same time, the weekly PP, the 20, 55, 100 and 200-day SMAs form another relatively strong demand area above the 0.66 level, namely around 0.6635.
Today only 52% of traders have a positive outlook towards the NZD, whereas the percentage of sell orders remains unchanged at 70%.