NZD/USD dives to 0.7923

NZD/USD is still carrying the inertia it received after hitting the falling resistance trend-line at 0.8086. The pair has already passed a support line at 0.8023 and it is unlikely to make prolonged stops either at 0.7922/85 or 0.7795. We consider 0.7716 to be the medium-term target for the price—a level where the pair will most probably come in contact with the major up-trend line initiation of which dates back to March of 2011.

Some of the market participants are beginning to enter long positions on NZD/USD, believing that the currency pair has bottomed out and is about to start to recover. Still, this view is shared by a minority, since the share of long positions increased to only 45% from 36%.