NZD/USD to try violate 0.8406/0.8391

The selling has fully set in and is probable to drive the price even lower. However, there are a few obstacles en route towards the bullish trend-line at 0.8331/23, where the mid-term outlook should be determined. The first support level stands at 0.8406/0.8391 and is followed by 0.8356/48. Technical indicators, meanwhile, carry on giving contrary to the most recent price action signals.

The bears have slightly enhanced their dominance over bulls since yesterday by increasing the share of short positions to 73% of the market, while long positions stay in a distinct minority—27% of the total amount. On the other hand, there is almost no difference between the numbers of buy (47%) and sell (53%) orders.