NZD/USD cancels rally

NZD/USD failed to sustain a recovery, failing to extend gains in light of the vicinity of the resistance line at 0.7855/43; however, the demand around 0.7730 has been successfully underpinning the pair for the recent weeks. Still, being that the bearish trend-line intersects the up-trend support on Jul 13, one of them will be soon breached. We are inclined to believe the support will turn out to be weaker, considering the indicators that point downwards.

Traders do not seem to be impressed by the latest fluctuations in the exchange rate, being that the increased volatility was not associated with significant changes in the ratio between the bulls and bears, who take up 62 and 38 per cent of the market respectively.