- Cambridge Global Payments (based on Bloomberg)
The New Zealand Dollar was unable to post any gains against US Dollar at the beginning of the week, but, nonetheless, underwent the expected correction. The Kiwi's main target from the downside is now the 0.69 psychological level, while focus will shift towards the 0.6840 area in case of a breach. On the other hand, the NZD/USD pair has been in a bullish trend since the beginning of the previous week, therefore, a bullish development today is more probable. In this case the Bollinger band, namely the nearest resistance, will doubtfully limit the gains, with focus shifting to the monthly R1 at 0.6987. The base case scenario, however, is a close around 0.6962—the previous week's high.
Bears keep outnumbering the bulls, as 60% of traders are now short the Kiwi. Meanwhile, the share of buy orders edged up from 52 to 56%.