Drawn In By a High Profile NZD/USD Reversal Pattern (Quick Take Video)

Talking Points:

• A sharp rally for the Kiwi would put NZD/USD up to the neckline on a clear inverse head-and-shoulders pattern
• The rally for the Kiwi was driven by news that the next RBNZ Governor would be a supposedly more hawkish Adrian Orr
• There isn’t much immediate RBNZ rate potential to seize on and the Fed decision Wednesday will be a distraction

Speculative futures traders have driven an extreme swing in Kiwi positioning to an over-extended net short position. See how retail FX traders are exposed in NZD/USD on the DailyFX Sentiment page. . Is it a signal or contrarian signal? ()

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