NZD/USD retreats from monthly R1

Since NZD/USD failed to push through the supply at 0.7985 (monthly R1), the upside risks implied by the double bottom pattern are starting to fade. One opportunity for the bulls to save situation will be to use the support at 0.7850 as a springboard to penetrate the Oct high. However, a more likely scenario, given the current conditions, will be a slide down to 0.7660 and formation of a triple bottom pattern with a subsequent spike through the key 0.8030.

Neither the bulls nor the bears are currently in the lead—48% of positions are long and 52% are short. As for the orders set near the spot, a majority (57%) of them is set to acquire the Kiwi against the Buck.