NZD/USD drops to 0.8370

The spot price is increasing the distance from the key resistance zone at 0.8476/53, testing a nearby line at 0.8370. A close beneath this level may pave a way towards 0.8307/0.8280 and the up-trend support, which was consistently respected by the market for the last six months, connecting all the minima within the interval. However, the bullish momentum is deemed to be feeble and unlikely to push the pair beyond 0.8476 in the nearest future.

While the New Zealand Dollar is still ranked as one of the least popular currencies, the U.S. Dollar in turn is one of the most preferred currencies comparatively to the major counterparts. Accordingly, positions are distinctly skewed towards being short (70%), leaving 30% of the market with longs.