NZD/USD negates the gap

Yesterday's rapid appreciation of the New Zealand Dollar led to a closure of the bearish gap and a logical test of 0.7881/70 that continues to provide considerable resistance. However, the current upward inertia could force the pair to rise even higher, up to the monthly pivot point at 0.7918, toughness of which is marginally enhanced by the 20-day SMA.

Although strength of the bullish towards NZD/USD traders' sentiment has been compromised due to a sharp rally in the rate, the bulls still take up the majority of market participants, namely 57% of their total amount. Meanwhile, the distribution between the buy and sell orders is 37% to 63% respectively.