— Jason Wong, Bank of New Zealand (based on New Zealand Herald)
Pair's Outlook
The NZD/USD currency pair remained relatively unchanged on Monday, which allowed it to retest the descending channel's upper border. Since the channel's resistance line is also reinforced by the weekly and the monthly PPs, a breach would be difficult to achieve. Technical indicators suggest the New Zealand Dollar is to weaken against the US counterpart today, which would be the perfect scenario, as that would reconfirm the channel's trend-line. The 20-day SMA and the weekly S1 represent immediate support, but a drop lower would not be a surprise, as the pair is now likely to begin moving towards the pattern's lower boundary.
Traders' Sentiment
Today 55% of traders are long the Kiwi (previously 50%), whereas 64% of all pending orders are to acquire the NZ Dollar, down from 69%.
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