- Bank of Tokyo-Mitsubishi (based on WBP Online)
The NZD/USD slightly exceeded expectations, as the expected correction pushed the pair slightly below the 0.68 target last Friday. Trade opened with a small bearish gap today, with the Kiwi struggling to sustain the bullish momentum. As a result, the a negative outcome is the most probable outcome, but the monthly R1 and the weekly PP form a tough demand area around 0.6750. In case of a breach, the second area to limit the losses lies just on top of the 0.67 major level, namely the 20-day SMA. Technical indicators, however, are giving mixed signals, unable to confirm the scenario.
Bulls and bears changed places, as there are now 52% of traders holding long positions, compared to 48% on Friday. At the same time, 57% of all orders are still to sell the NZ Dollar (previously 55%).