- CMC Markets (based on WBP Online)
At the end of the previous week the New Zealand currency exceeded expectations and soared above 0.68 dollars, despite a strong reading of US NFP. The Kiwi is now likely to undergo a correction, although there are two levels forming a support cluster just below today's opening price, namely the Bollinger band and the monthly R1. However, with the breach of the resistance trend-line last week, the NZD/USD is open for more upside possibilities in the longer term, but monthly technical indicators suggest the pair could drop back to 0.65 in March. Nonetheless, the pair is still expected to end the day lower, with a chance of putting the second support at 0.6731 to the test.
Traders remain equally divided between bulls and bears, whereas the number of orders to purchase the Kiwi edged up from 32 to 65%.