NZD/USD still underpinned by 2013 highs

NZD/USD fell beneath the weekly S1 yesterday and now the pair is testing the monthly pivot point. This level is likely to be harder to breach, especially taking into account that it is reinforced by one of the 2013 highs. Additional support is supposed to be located at 0.8508/02, where the 55-day SMA merges with the weekly S2, but there are currently almost no indicators pointing in that direction, meaning the February-March recovery could soon be resumed.

The bears dominate the market, as they hold 72% of all of the open positions on the pair. The bulls, on the other hand, are not willing to give up easily, as the buy-side of pending orders expanded further and is 73% 100 pips from the current price.