NZD/USD erodes 0.8368

A support level at 0.8368 has a low chance of withstanding downward pressure and thus may expose 0.8339/37, where the 55 and 100-day SMAs lie along with the weekly S1. Should the dip extend beyond that, then there will be an opportunity for 0.8310/0.8298 to prove its worth as a support area. Nevertheless, technical indicators give us a reason to believe that NZD/USD is bullish in a longer time horizon.

NZD/USD has become even more oversold that is was previous week. The portion of bulls has lost another 2% and is now 26%. Consequently, a substantial majority (74%) of market participants view bearish scenario as the one to unfold. Additionally, the pending orders are dominated by orders to sell the kiwi (60%).