NZD/USD rebounds form 0.8203/0.8170

NZD/USD confirmed 0.8203/0.8170 as the support after breaching it and is now heading towards the 55-day SMA at 0.8293. If the bullish momentum is preserved, the currency pair may soon encounter a potentially dangerous round level at 0.8400, which has to be overcome together with Oct 22 high before the rate could challenge the April high at 0.8676/53.

The New Zealand Dollar remains one of the least preferred currencies in the SWFX market. Merely 29% of positions in its crosses are long the kiwi. Specifically in NZD/USD the gap between the bulls and bears is slightly less pronounced, the latter take up 70% of the market.