NZD/USD approaches 0.8499/0.8476

NZD/USD maintains the bullish bias and is currently forcing its way through the resistance at 0.8444/23. Subsequently, the rally should be able to extend, which in turn may lead to a re-test of a formidable area at 0.8499/76. There the pair is anticipated to be sold off, despite the signals provided by the weekly and monthly technical indicators, which appear to be misleading at the moment, since they do not take into the account that the last time 0.8476 was surpassed was 18 months ago. Moreover, the surge above this level turned out to be unsustainable and was negated soon thereafter.

The New Zealand Dollar is one of the most unpopular currencies in the SWFX market, being bought only in 27% of cases on average. In its pair with the U.S. Dollar, it is also the least preferred one. At the moment 27% of positions are long and 73% are short on NZD/USD.