NZD/USD develops rally further

NZD/USD preserves the tendency to move up following a test of the 200-day SMA and the lows seen in the last quarter of 2012. Even a cluster of resistances between 0.8203 and 0.8170 does not seem to be capable of stopping the nascent recovery. If this area is indeed breached, then the price will most likely maintain the bullish course at least until the local peaks near 0.84 are reached.

Although on the whole the market participants are less optimistic regarding the potential of the greenback to gain value than 24 hours ago, the shift in the attitude is not being reflected in the distribution between the long and short positions on NZD/USD—this ratio (30% to 70% respectively) remains stable.