NZD/USD Ready to Explode? The Smart Money Is Making a Move

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Bias: Bullish Bounce from Key Demand Zone
NZD/USD is testing a strong confluence zone:
Long-term ascending trendline support
Weekly demand area between 0.5890 and 0.5940
Bullish RSI divergence near oversold conditions
The triple rejection wicks signal strong demand around 0.5900, suggesting a possible reversal toward the 0.6020–0.6050 resistance area.

🧠 COT Insight:
NZD: Non-commercial traders added +669 long contracts and reduced shorts by -102 → net bullish shift
USD: Net short exposure increases; total non-commercial shorts now exceed longs by ~4000 contracts
Implication: institutions are rotating into NZD while trimming USD exposure

📊 Sentiment:
86% of retail traders are long NZD/USD → retail sentiment is heavily skewed
This could delay or limit upside as smart money often moves counter to retail positions

📅 Seasonality (July):
July has historically been a bullish month for NZD/USD across all reference windows (20Y, 15Y, 10Y, 5Y, 2Y)
Average July return consistently positive → adds conviction to bullish thesis

🗺 Outlook:
If the zone at 0.5880–0.5920 holds, price may bounce toward 0.6020–0.6050.
Break below would invalidate structure and expose 0.5850 and then 0.5780.

Penafian

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