NZD/USD challenges 0.7828

NZD/USD fell through the 55-day simple moving average and the pair is currently testing the down-trend support at 0.7828, which could initiate a short-squeeze. However, the resistance zone that stretches from 0.7893 up to 0.7952 is unlikely to let the price rally extensively. Even if it gives in, then the key resistance area 0.82-0.81, formed by the 100 and 200-day SMAs, along with this year's Mar low, should retain overall bearish bias.

Even more traders than yesterday are now willing to go long on the New Zealand Dollar, being that, according to 55% of the SWFX marketplace participants, the kiwi is currently underpriced and is therefore likely to gain value in the future. Nevertheless, their advantage over bears is still insufficient—the sentiment remains largely neutral.