- Colin Lawrence (based on Exchange Rates)
The New Zealand Dollar's performance yesterday was similar to the Aussie's, as the NZD/USD currency pair erased intraday gains and ended the day with a slight decline. Similarly, the bearish momentum is also likely to prevail today, with the exchange rate returning under the nine-month resistance line and, thus, below the 0.69 psychological level. The closest level to limit the dips is located at 0.6877, represented by the weekly R3, whereas demand around 0.6825, represented by the weekly R2 and the monthly PP, is expected to be today's floor.
Bears keep dominating the market, as 71% of traders hold short positions today, compared to 59% on Thursday. The number of buy orders, on the other hand, increased from 53 to 88%.