- UOB (based on FXStreet)
Despite the New Zealand Dollar opening with a bullish gap on Thursday, it was unable to climb significantly higher against the US Dollar, also unable to pierce the ascending channel's resistance line. As a result, the NZD/USD currency pair is expected to preserve the pattern today, therefore, undergo a corrective decline. However, below the Kiwi is supported by a cluster, formed by the weekly R1 and the Bollinger band, which could limit the intraday losses at 0.7088/57. From here on further the pair is likely to begin declining, until the channel's lower boundary is reached again around the 0.66 mark.
There are 60% of traders now being short the Kiwi, compared to 59% on Thursday. At the same time, the portion of orders to buy the New Zealand currency increased from 52 to 55%.