Chart Created Using TradingView
Technical Outlook : Heading into the RBNZ interest rate decision shortly after the New York close, Kiwi continues to hold below former trendline support, now resistance. On whole the pair has setup a well-defined weekly opening-range and we'll be looking for a break heading into the release.
Kiwi is now testing resistance on the back today's FOMC policy meeting with a breach here targeting 7390 & key resistance at the 2016 high-day close at 7449 . Interim support rests at 7292/96 backed by the weekly & monthly opens at 7248/56 - a break below this region would be needed to shift the focus lower targeting 7218 & the 61.8% retracement at 7155 . From a trading standpoint, I would be looking for near-term strength to offer favorable short entries while below the high-day close. For the complete setup and to continue tracking this trade & more throughout the week- Subscribe to SB Trade Desk .
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- A summary of the DailyFX Speculative Sentiment Inde x (SSI) shows traders are net short NZDUSD - the ratio stands at -1.39 ( 42 % of traders are long)- bullish reading
- Long positions are 7.5 % above levels seen last week while short positions are 17.3note% higher over the same time period.
- Open interest is 6.7% lower than yesterday and 13.1% below its monthly average.
- Note that SSI has continued to come off extremes since the high registered earlier this month and although retail traders remains net short, the risk remains for a move lower while below key resistance.
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---Written by Michael Boutros, Currency Strategist with DailyFX
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