- Bank of New Zealand (based on The New Zealand Herald)
The New Zealand currency rallied against the US Dollar for another day yesterday, reaching a fresh 2016 high of 0.6860. The Kiwi is now undergoing a correction, also ignoring the immediate support in face of the Bollinger band and the weekly R1 around 0.6840. The second obstacle to limit the dips is located at 0.6759, represented by the monthly R1. However, the 0.68 major level is likely to prevent the NZD/USD pair from edging lower as well. Technical studies shifted from bullish signals to mixed, indicating that the bearish scenario is more probable.
Traders' sentiment remains somewhat bearish at 52%, unchanged since Thursday. Meanwhile, there significantly less orders to sell the Kiwi today. Their percentage now accounts for only 55% of the market.