Technical analysts at Commerzbank are bearish on New Zealand’s dollar versus its US counterpart.

The specialists note that NZD/USD is now hovering above support at $0.7607 (78.6% Fibonacci retracement of the pair’s advance from November to February).

In their view, this support is likely to be breached soon and kiwi will start moving down targeting $0.7168 (200-week MA) and $0.7116 (2011 minimum) in the medium term.

According to analysts at Barclays Capital, a combination of global and domestic factors pulls AUD/USD below parity. However, in a short term the Aussie may enjoy a rally on the back of the postponed Greek elections and the softening tone of EU pro-austerity leaders.

Specialists at Barclays Capital lowered their monthly forecast for AUD/USD from $1.0400 to $0.9600.

Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire.

It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (2 p.m. GMT).

Analyst at RBS recommend investors (especially those who currently don’t have position at this market) to take a “wait & see” approach trading EUR/USD.

In their view, it’s now too late to rush in the current bearish trend – better to wait until euro tests $1.2624 (2012 minimum, target from the “head and shoulders” pattern) and see whether it holds or gets broken.

On Wednesday sterling fell to a four-week low after the BoE inflation report showed the prospects for UK GDP growth are “unusually uncertain”.

According to BoE, the economy may grow by about 0.8% this year vs. previously expected 1.2%. The inflation is likely to stay above the 2% target at least in the next year. Weak growth and high inflation make the choice of monetary instruments difficult for the MPC..

The greenback closed yesterday above 200-day MA versus its Canadian counterpart rising to the maximum since the end of January at 1.0130.

USD/CAD is still rather closely correlated with global risk sentiment. Taking into account continuing uncertainty in the euro area, the pair’s advance looks natural.