- NZD/USD Rebound during risk forward of New Zealand CPI
- Updated targets cancellation levels
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Technical Outlook: Kiwi tested a Mar annulment day tighten during 7042 before branch reduce with today’s candle attempting to post an outside-day annulment if we were to tighten during these levels (near-term bearish). Key near-term support rests during 6951/72 with a mangle of a monthly opening-range lows targeting vicious support during 6861/85. Resistance / bearish cancellation stands during 7076/90 where a 100-day relocating normal converges on a 75% line of a forward pitchfork formation.
Notes:It’s too early to rest to heavily on this arrangement though this newly identified slope off a lows highlights near-term support during a weekly open / 61.8% line during 6990 with a some-more poignant support connection eyed during 6950– a mangle next this turn would be indispensable to countenance resumption of a broader downtrend in Kiwi.
Heading into a New Zealand Consumer Price Index (CPI) recover after today, I’ll preference vanishing strength into constructional insurgency with a mangle next a weekly opening-range lows indispensable to keep a short-bias in play. Consensus estimates are job for an annualized imitation of 2%, adult from a prior review of 1.3% y/y.
- A outline of IG Client Sentiment shows traders are net-long NZDUSD- a ratio stands during +1.76 (63.8% of traders are long)- bearish reading
- Retail traders have been net-long given Mar 27- span is usually down 0.1% given then
- Long positions are 0.9% aloft than yesterday and 4.6% higher from final week
- Short positions are 3.7% higher than yesterday but 21.1% reduce from final week
- While broader view continues to indicate lower, it’s value observant positioning is reduction net-long than yesterday though some-more net-long from final week and leaves a evident short-bias exposed streamer into tonight’s CPI print. From a trade standpoint, we would be looking to brief a spike into pivotal resistance.
What do sell traders’ buy/sell decisions spirit about a Kiwi trend? Find out here!
Relevant Data Releases
Other Setups in Play:
- EUR/NZD Into Resistance- Pullback to Offer Entries
- EUR/USD Rallies to ‘Decision Point’
- GBP/AUD Range Break to Determine Next Leg- Constructive Above 1.62
- Strategy Webinar: Technical Levels amid a Geopolitical Minefield
– Written by Michael Boutros, Currency Strategist with DailyFX
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