NZD/USD's bullish momentum tested by 0.8422/03

Perspectives of NZD/USD in the medium term are from neutral to bullish, since the rising support line should be carried on being respected by the market until March—this view is also reinforced by longer term technical indicators. Still, with each new day the strength of the trend-line will diminish, while 0.8492/53 (Dec 14 high) is anticipated to be impenetrable for the rallies in the meantime.

The U.S. Dollar and the New Zealand Dollar are on the opposite sides in minds of investors, being that the former is the most and the latter is the least frequently acquired currency on average, in 59% and in 28% of cases, respectively. Therefore bears have a great advantage over bulls particularly in NZD/USD—71% versus 29%, accordingly.