Last week the RBNZ cut interest rates by 0.25% which set a downward pressure on the Kiwi. So fundamentally we are bullish on this pair. On the technical side, this pair has been on our watch list since 2 weeks ago after it broke a major resistance level of 1.09108. A break above this side sent prices higher to test the round number of 1.13000 which was the November 2014 major resistance. Looking at the four hour chart, we can see that prices were rejected at this round number 3 consecutive times. For that I believe that prices will have to retrace before it can push towards the next possible round number of 1.160. Prices need to re-test the previous resistance before it can breach the strong 1.130 level. My expectation suggests that prices might fall towards the 0.38 fib level at the round number support 1.10 (red line). We will wait to see if prices breach the 1.10 level. If it did then we will be targeting the support of 1.09 (green) which was the previous resistance, and from there prices should continue its original uptrend. I will wait for prices to break the 1.130 and close above it, to add further positions.
Currently
- I am up 500 pips
-There is a very strong bullish momentum.
To add further postions:
Wait for prices to take the normal path of breathing and push back again.
Currently
- I am up 500 pips
-There is a very strong bullish momentum.
To add further postions:
Wait for prices to take the normal path of breathing and push back again.