NZD/USD completes double bottom

NZD/USD is currently in the process of forming a double bottom pattern. This pattern implies the currency pair is unlikely to extend the Jul-Sep sell-off, but is now expected to change the trend to a bullish one. But the present negative outlook will not be altered unless the neck-line is violated. It is represented by the Oct high and weekly R1 at 0.8030. Once the price settles above this level, the Jun low and 200-day SMA at 0.84 will become the next target.

At the moment the sentiment with respect to NZD/USD is neutral—49% of positions are long and 51% are short. The distribution between the buy and sell orders is even more balanced—50 and 50%, respectively.