NZD/USD lifts from 0.7740/16

As soon as the pair approached a formidable support zone at 0.7740/16, it reversed and, ignoring a resistance level at 0.7929, soared up to 0.8037/11—continuation of the down-trend that was guiding NZD/USD south since May 13. Considering that technical studies are not giving a particular signal, the rate could fluctuate between these converging lines for a week or two.

SWFX traders were right to bet on kiwi's appreciation yesterday, since the currency pair was acting strongly bullish afterwards. Some of them appear to have already closed positions—the share of longs dropped from 59% to 55%. However, the portion of orders to sell the New Zealand grew substantially, from 61% to 70%.