NZD/USD to be capped by 0.7750

The New Zealand Dollar is currently following a well-defined down-trend that connects all of the highs posted since Nov 16. Consequently, NZD/USD is likely to respect the resistance at 0.7750 and move closer to the lower boundary of the bearish channel, which began to emerge during the last days of September. However, in order to reach 0.76, the pair will have to violate a significant level at 0.767, where the weekly S1 coincides with the monthly S1.

There is still no consensus among the SWFX traders following NZD/USD—50% of positions are long and the remaining 50% are short. Concerning the orders, the portion of the sell ones has dropped from 77% to 69% within the last 24 hours.