NZD/USD faces key support at 0.7740/16

The pair did not even have to rise as high as 0.7929 to receive a strong bearish impulse that subsequently sent the price down to 0.7740/16. This support in turn is formed by the bullish line that started to be topical for the market two years ago, in March of 2011, meaning that it may take a lot of time and effort to violate it. In any case, we look for a surge at least up to 0.7929, before there are more convincing arguments that NZD/USD is bound to decline further.

The latest spike down substantially increased kiwi's appeal among the market participants. Yesterday 46% of traders were long on NZD/USD, now there are 59% anticipating a rally in the rate. Nonetheless, there might be a lot of resistance against it, being that 61% of orders are to sell the New Zealand Dollar.