NZD/USD supported by 0.8459/52

As expected, a rebound from the up-trend support line was not sustained beyond 0.8476 and the currency pair returned back to re-challenge 0.8459/52. In case this area fails to reignite appetite of investors for the kiwi, the price could slide as low as 0.8362/55, the current location of the 55 and 100-day SMA. Still, daily and monthly studies point upwards, suggesting an alternative scenario.

Although the percentage of short positions has fallen, 71% of them still consider NZD to be bearish relative to the U.S. Dollar. If we take all of NZD's crosses, the picture is exactly the same—only 29% of traders believe that it is going to appreciate. Orders placed on NZD/USD do not give a particular signal, 49% of them are to buy and 51% are to sell the kiwi.