- Westpac Banking Corp. (based on Bloomberg)
The NZD/USD trade was subdued on Tuesday, as the exchange rate remained caged in a tight range between 0.6747 and 0.6759. The pair is in a clear corrective trend until price reaches 0.66 US dollars, despite technical studies now giving bullish signs in the daily timeframe. The Kiwi is now under the risk of closing below the 0.67 mark, if the 20-day SMA in that area fails to provide sufficient support. In case of a breach, the next target would then become a tough cluster right on top of the 0.66 target level, but such a sharp decline is unlikely to occur just yet.
Market sentiment keeps oscillating around the equilibrium: today 51% of traders are long the Kiwi, while the remaining 49% are short. At the same time, the number of orders to acquire the New Zealand Dollar increased from 60 to 71%.