NZD/USD declines precipitously

NZD/USD, as well as the other currency pairs discussed in this issue, is a good example how technical approach to the analysis of the price chart was disrupted by yesterday's events. Even though we were wary of the existing downside risks, bullishness in the short term was expected to persist until 0.8161/44, but the direction was changed halfway to the monthly PP.

Bulls continue to expand their dominance over bears by dislodging them from the market. The percentage of long positions now amounts to 58%, 56% yesterday. As for the pending orders placed, 42% of traders plan on acquiring the kiwi and 58% are willing to sell it either to close a long position or to open a short one.