NZD/USD closes bearish gap

NZD/USD has already retrieved the pips lost over the weekend by swiftly recovering from 0.7820, but the pair stands on a shaky ground and we therefore anticipate a subsequent drop, down to 0.7740/16, an up-trend line that is reinforced by the weekly and monthly S1 levels. The sell-off has an increased probability of being initiated either at 0.7929 (weekly PP) or at 0.8037/33, the bearish resistance line.

It is becoming more and more popular among the market participants to go long on the New Zealand Dollar, even though the number of shorts (54%) in its crosses continues to exceed the number of longs (46%). NZD/USD is viewed in the SWFX marketplace as inclined to rally—57% of traders are bullish on it.