(MENAFN- DailyFX) NZD/USD reversal targeting uptrend support threat is lower while within near-term channel Check out our 3Q projections in our Join Michael for Live Weekly Strategy Webinars on The has fallen more than 1.7% off the monthly highs with the pullback now targeting broader up-trend support. These are the updated targets and invalidation levels that matter on the NZD/USD charts. Review this week's for an in-depth breakdown of this setup and more.
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NZD/USD Daily Price Chart Technical Outlook: In my latest we noted that price had, 'responded to initial resistance at 6930 and while the immediate risk remains for a pullback off these levels, the medium-term outlook remains constructive. Price is threatening a break below confluence support today around 6850 where the May low converges on the 200-day moving average a close below this level would risk a deeper correction towards the median-line. Note that an RSI support trigger has already broken & offered resistance and further highlights the near-term threat.
NZD/USD 240min Price Chart Notes: A closer look at Kiwi price action highlights last week's reversal off resistance with the decline trading within a near-term descending channel off the highs. The immediate threat is lower while below the highlighted slope confluence around ~6890s with near-term bearish invalidation at the monthly open at 6915. Confluence support rests at 6810 backed closely by the 100% extension at 6783 and the 38.2% at 6761 both levels of interest for possible exhaustion / long-entries IF reached.
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Bottom line: and while the immediate threat is lower, ultimately the pullback may offer more favorable long-entries. From a trading standpoint, I'm targeting the median-line on this drop and we'll be looking for reaction there for guidance. IF this pullback has deeper intentions, near-term advances should be capped by channel resistance.
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NZD/USD Trader Sentiment A summary of shows traders are net-short NZD/USD - the ratio stands at -1.32 (43.1% of traders are long) weak bullishreading Long positions are12.6% lower than yesterday and 5.4% higher from last week Short positions are 7.1% lower than yesterday and 8.3% higher from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests NZD / USD prices may continue to rise. Traders are further net-short than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger NZDUSD-bullish contrarian trading bias from a sentiment standpoint. See how shifts in NZD/USD retail positioning are impacting trend-
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