NZD/USD to challenge 0.82

NZD/USD effortlessly pierced through 0.8317/12 yesterday and is now in the vicinity of the next support level at 0.82. Another line in the sand is at 0.8147, there the 20-day SMA merges with an even more significant moving average, which in turn takes into account the last 200 periods. There the price is expected to attempt to rekindle the recovery. Below them the decline is likely to be accelerated.

The price of the New Zealand Dollar dropped by a wide margin, but is does not appear to have had any noticeable effect on the positioning of the traders, a substantial majority (71%) of whom continue to hold short positions on NZD/USD. Among the orders, 61% are placed to buy the kiwi against the U.S. Dollar.