#NZDUSD @ 0.63539 short squeeze is in full effect to start the week.
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- NZD/USD short squeeze is in full effect to start the week.
- NZD/USD bulls eye the 50% mean reversion for space in the 0.64s for the day ahead.
NZD/USD rallied at the start of the week, ending the US session some 0.8% higher near 0.6360 as a result of rapped bears being squeezed in the open. A rebound in global risk appetite and a slight pullback in the USD DXY index ahead of key US CPI later today influenced positioning also.
”Arguably the biggest threat to the Kiwi lies in US bond yields, which could keep rising if markets shy away from cuts,” analysts at ANZ Bank argued.
”But that might be a lengthy process, and local bond yields are also rising. So it’s more balanced, but we do think it makes sense to plan for volatility given the higher than normal degree of uncertainty.”
Meanwhile, the technicals played out as follows:
We have a bullish inverse head and shoulders shaping up on the daily chart but the price is being resisted by a dominant trendline.
Meanwhile, we had three days of shorts in the market and Monday trapped the ones that joined the party late only to be ushered out of the door by the bulls from the off. Bulls eye the 50% mean reversion for space in the 0.64s for the day ahead.
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