NZD/USD reaches 2012 lows

NZD/USD slipped beneath the 200-day SMA, but was stopped by the down-trend support that could be drawn through the peaks observed since Oct 22. Considering formidability of this demand area, there is a substantial possibility the kiwi will bounce up to 0.8190 (monthly PP and falling resistance line) before proceeding with the decline in the long run.

Short positions, even though currently in the majority with 58% of the market, which is considerably below the 10-day average of 68.5%, are becoming less popular, as more traders consider NZD/USD to be oversold. Nevertheless, right now 100 pips from the spot there are more orders to sell (56%) the kiwi than to buy currency.