NZD/USD range bound

Pair started the week rather erratically wandering between 55 and 100 day SMA's. Which raises a lot of questions, especially after Fridays plummet by more than 100 pips. However, technical indicators suggest we should see an attempt to recover some of the pairs losses, but medium term outlook lets us believe that pair might return to 0.82—area which is much more comfortable for most of the traders.

Three out of four traders continue to sell the kiwi versus the greenback. Such situation continues for almost two weeks now and it is not likely to change soon as overwhelming majority of traders, 89% to be exact, have posted short orders on the pair.