NZD/USD rebounds from 0.7788/51

NZD/USD has just confirmed 0.7788/51 as the support and is now headed en route to the nearest important resistance at 0.7947/31, where the weekly R1 merges with the 55-day SMA. Beyond that, if the price does not close beneath the up-trend to confirm its bearish intentions, the pair could target the monthly R1 that safeguards March low at 0.8161.

The New Zealand Dollar followed its Australian peer upwards, being that there are highly correlated. As a result, a few traders decided to square off their bets and the portion of long positions on NZD/USD went back down to 60%. However, despite their strong and long-standing correlation, the currencies on average are bought with significantly different frequencies—AUD in 71% and NZD in merely 46% of cases.