- Rabobank (based on WBP Online)
On Tuesday the New Zealand Dollar skyrocketed against the Greenback, caused by a rebound in oil prices and Yellen's dovish statement. The Kiwi retained most of its strength and is expected to outperform the Buck for the third consecutive day. However, the immediate resistance is formed by fourth levels, namely the weekly R3, the Bollinger band, the Oct 2015 high and the nine-week up-trend. The second target is located at 0.6929 in face of the monthly R2, which is expected to hold the gains if the resistance line is pierced. Technical studies are unable to confirm the possibility of the positive outcome.
Market sentiment shifted to the bearish side, as 58% of all open positions are now short (previously 48%). All pending orders are now equally divided between the buy and the sell ones.