NZD/USD plummets to 0.8371/58

The New Zealand Dollar proved to be unable to keep up the accelerated pace of appreciation relative to the U.S. Dollar. It turned around ahead of the resistance formed by the weekly and monthly R1 and fell all the way down to the support at 0.8371/58, where the weekly S1 merges with the 20-day SMA. This sell-off occurred despite the majority of the daily and weekly technical indicators giving 'buy' signals.

Despite the strong correlation between the Aussie and the kiwi, the attitude of SWFX traders towards these currencies is diametrically opposite. While the first one is broadly expected to gain value (72%), the second one is being heavily sold-off (as a result 74% of positions in its crosses are short on it). Specifically in NZD/USD 72% of traders expect the New Zealand Dollar to lose even more ground.