The kiwi has been on an absolute tear since mid May 2017 , clocking 5c on the dollar.
At this time in mid may the COT data reversed, and has moved from net shorts to net long . Last weeks net longs are the second highest recorded figure ( 29 K +) , in recent recorded history. Kiwi 10 year bonds have just popped back over 3.00%.
A potential top may have formed at the end of the financial year at .7350. The daily chart in the last week has shown price travelling along the wedge trendline, which may now have changed polarity to support. There has been no daily close beneath the trendline.
A period of consolidation would seem appropriate, with possibly a flag formation.
The carry trade and COT data would suggest fundamentally the KIWI is a buy , and would be considered so at trendline support.
A confirmed break of the trendline would likely incite a bearish collapse of price.
At this time in mid may the COT data reversed, and has moved from net shorts to net long . Last weeks net longs are the second highest recorded figure ( 29 K +) , in recent recorded history. Kiwi 10 year bonds have just popped back over 3.00%.
A potential top may have formed at the end of the financial year at .7350. The daily chart in the last week has shown price travelling along the wedge trendline, which may now have changed polarity to support. There has been no daily close beneath the trendline.
A period of consolidation would seem appropriate, with possibly a flag formation.
The carry trade and COT data would suggest fundamentally the KIWI is a buy , and would be considered so at trendline support.
A confirmed break of the trendline would likely incite a bearish collapse of price.