NZD/USD recoils from 0.7752/31

NZD/USD has just respected the bullish trend-line that may be drawn through the troughs since 2009 and at the moment is moving north, en route to the monthly pivot point. This support, currently at 0.7752/31, represents a serious threat to the bearish outlook, given its composition, but a drop to the 2011-2012 lows remains a viable development of the present situation.

A massive sell-off of the kiwi last week did not discourage the market participants. The majority (57%) of them are keeping their long positions, reckoning that the pair has already hit rock bottom, meaning the nearest supports in the end will prove to be able to commence a recovery of NZD/USD.