- Societe Generale (based on Reuters)
On Friday the Kiwi recovered from its intraday low and ended the day relatively unchanged, having edged only four pips lower. However, the NZD/USD currency pair still experienced a bearish gap today, therefore, opening below the 0.69 psychological level. The NZ Dollar is now expected to extend its decline, with the closest level to limit the losses located at 0.6845. In case the bullish momentum prevails, the ten-week resistance line is expected to prevent the Kiwi from surging higher, while the second resistance area lies around 0.6940. Technical studies, on the other hand, are unable to confirm either scenario, as they retain their mixed signals both in the daily and the weekly timeframes.
Bears are outnumbering the bulls by only 4% points, while the share of orders to acquire the Kiwi dropped lower, namely from 88 to 78%.