NZD/USD erodes 0.7960/16

As it turned out, NZD/USD was not planning on bouncing off the down-trend line at 0.7960/16, but soared through the resistance and is now quickly advancing towards the monthly R1. Nonetheless, the rally is unlikely to extend beyond 0.8161/49 (Mar low and 100-day SMA) and thus should be shallow, since the bias for the next few months is negative.

NZD/USD has already recovered a considerable amount of losses, but with every step the pair makes upwards, the share of bulls in the market diminishes. Right now 53% of traders are long the New Zealand Dollar, but, given the latest trend, the optimism will soon fade out, meaning, at least according to the market, the correction is about to come to an end.