NZD/USD sees demand at 0.7450

The New Zealand Dollar is currently trading at the level of the 55-day SMA, but it has already managed to dip to the monthly PP today as well. Since a test of these supports is unlikely to go unnoticed in the market, and the daily indicators are largely bullish, there could be a small rebound during the next few days. Meanwhile, the longer-term outlook stays negative with a target at 0.7250, a breach of which will open a path towards the 2011 low at 0.7114.

As the Kiwi underperformed, the SWFX traders have become even more convinced in bearishness of the currency. The portion of shorts went up from 71 to 73%. Similarly, the share of buy orders also grew further, from 60 to 66%.