NZD/USD hesitates in front of the neck-line

For now the bulls are not as active as last week—the resistance at 0.7985 (monthly R1) is not letting the Kiwi to advance. However, in order to realise the bullish potential of the emerging double bottom pattern, NZD/USD must close above the Oct high at 0.8030. On the other hand, if the currency pair falls through the monthly PP at 0.7850 and then slides under the monthly S1 at 0.7760, this will be a strong ‘sell' signal.

The SWFX market participants remain undecided with respect to the New Zealand Dollar, as there are equal amounts of long (48%) and short (52%) positions open. In the meantime, the distribution between the buy and sell orders is 56 and 44%, respectively.