Kiwi Breakout
After reaching a low of .6962, Kiwi has rallied 176 pips to a high of .7138. The .7087 high was broken and triggered stops propelled the pair higher. As I stated on September 13th,
Retail Traders Trying to Pick Kiwi Top
NZD/USD hit a new yearly high of .7087 on Friday and the FXCM Speculative Sentiment Indicator shows that 3 traders are short for every one trader who is long. This is a contrarian indicator that tells me that this strong uptrend will more than likely continue. As prices start to rise against these traders, a short squeeze condition could take this pair toward its old August 2008 high of .7214. Look to buy the 2-pip break out above .7087 or drop down to a 4-hour chart and use your favorite oscillator like Stochastics or RSI to indicate a buy signal from the oversold area.
NZD/USD uptrend continuation was confirmed by the SSI indicator available to FXCM live traders. Look for the August 22nd high to come into focus at .7214.
