NZD/USD capped by 0.84

NZD/USD has just formed a bearish channel, meaning the Kiwi is likely to continue underperforming. The upper trend-line implies that the price should not rise above 0.84, a resistance level also strengthened by the monthly pivot point, Jun low and 20-day SMA. There might be some profit-taking around 0.8260 (down-trend and monthly S1), but the bears are expected to keep on pushing the price lower, towards the 2014 low at 0.8050.

The number of traders believing that the New Zealand Dollar is going to appreciate is growing, as the share of longs is now 62% (58% yesterday). Concerning the orders, 63% of them are set to purchase the Kiwi.