NZD/USD extends rebound from monthly PP

Though the base case scenario was only a shallow rally from 0.7450, the price is already noticeably above the 100-day SMA and intends to climb even higher. However, NZD/USD is approaching a dense supply area between 0.7700 and 0.7650, and the current bullish momentum is highly unlikely to be enough to penetrate it. The resistance zone is created by an intersection of two major trend-lines, monthly R1 and the 200-day SMA.

The sentiment towards the Kiwi remains strongly bearish. At the moment 64% of open positions are short. However, there might be a potential increase in demand for the currency, since the share of buy orders rose from 36 to 56%.