Kiwi Support Shelf Break Could be Significant

NZDUSD is testing March 2011 levels (.7108).

Sentiment positioning shows +3.88 as nearly 4x as many traders are already long the pair vs shorts. When used as a contrarian signal, that means we have a future supply of sellers who would need to close their long position should this move materially lower.

This appears to have room to run as well should a breakdown materialize. Next level of significant support is down near .65 which corresponds to June 2010 lows. Wave relationships show up in the .61-.64 zone as well.

Trade well!