###POV. The flightless bird has fallen from....>

KIWI: ###POV. The flightless bird has fallen from $0.7337 to $0.7192 so far this

week, a move of just less than 2%. While some of the move can be attributed to

the reduction of NZ's growth and budget surplus forecasts by the government and

political infighting ahead of next month's election, positioning has also been a

factor with recent CFTC data showing speculative accounts are still holding kiwi

longs near to record levels. Kiwi is now very close to key support seen at

$0.7188, the level marks the 50% retracement on the $0.6818 to $0.7558 ascent, a

break opens $0.7101 (61.8% on the same move). Traders have also noted a

head-and-shoulders pattern on the daily charts and will be confirmed after a

valid breakdown below the right hand shoulder support at $0.7185, which may

prompt further technical selling.