NZD/USD stays underpinned

NZD/USD remains buoyant due to a dense demand area below the current price, namely between 0.8232 and 0.8200. If this support holds, the kiwi will have a possibility to re-test the monthly R1 at 0.8324. Alternatively, we will be expecting the sell-off to push the price down to the 200-day SMA, which is reinforced by the monthly S1 and the lows seen back in the last quarter of 2012.

Although there are relatively fewer bears than yesterday, they are in a complete control of the market, taking up 72% of it. On average for the past 10 trading days their share stands at 69%. Concerning the pending orders, 73% of them are to sell the New Zealand Dollar against its U.S. counterpart.