NZD/USD retreats from 0.8476/63

Resistance at 0.8476/63 has once again proved to be impenetrable, even after a formidable surge at the end of the last week and a subsequent bullish gap that has already been closed. NZD/USD should now focus on the supports, the nearest of which stands at 0.8406/0.8390. Afterwards the currency pair will be able to target more serious levels—at 0.8356/45 and 0.8331/18.

Along with the Australian Dollar, the kiwi is one of the least preferred currencies in the SWFX marketplace, being bought only in 28% of cases on average across its crosses. Consequently, NZD/USD is strongly oversold—72% of opened positions are short, even though lately we have observed a robust rally of the pair.