NZD/USD challenges weekly S1

NZD/USD is moving away from resistance at 0.7650 that stopped development of a double bottom pattern. The immediate support level is at 0.7505, but it is highly unlikely to prevent further depreciation of the Kiwi. The 55-day SMA at 0.7482 has a higher chance of slowing the sell-off down, but there is still a low probability of a strong bullish reaction until the rate falls to 0.7250, and the technical indicators are in favour of this course of events.

The traders' attitude with respect to the New Zealand Dollar is strongly negative, being that 71% of open positions are short. However, the sentiment has the potential to improve, since most orders placed nearby are to purchase the Kiwi.