Decision Time for Kiwi Bulls
The NZD/USD has been bullish since Monday’s strong rally was fueled by talk of fiscal stimulus to boost the New Zealand economy. The Kiwi was also boosted after an unexpected rebound in Chinese manufacturing raised hopes of a brighter outlook for the world economy. And now NZD is the strongest major of the week.
Technically, NZD/USD’s 4-hour chart is reporting a bearish divergence of RSI. In addition the price is testing 61.8% Fibo retracement on the fall from 0.6790 to 0.6204 at 0.6566. The direction of the pair is likely to be determined by trader reaction to that level.
In case of upside break we can see a test of the August top at 0.6588. This price is a potential trigger point for an acceleration to the upside with the first target coming in at 0.6666 (78,6% Fibo level). Take in mind that later today is US NFP figure. And a weaker U.S. Dollar (softer report) could also underpinning the Kiwi as well as steady demand for higher-yielding currencies.
On opposite direction, a return again inside of the bullish channel and bellow 200-day SMA will signal the presence of sellers. The first downside target is at 0.6541.
Technically, NZD/USD’s 4-hour chart is reporting a bearish divergence of RSI. In addition the price is testing 61.8% Fibo retracement on the fall from 0.6790 to 0.6204 at 0.6566. The direction of the pair is likely to be determined by trader reaction to that level.
In case of upside break we can see a test of the August top at 0.6588. This price is a potential trigger point for an acceleration to the upside with the first target coming in at 0.6666 (78,6% Fibo level). Take in mind that later today is US NFP figure. And a weaker U.S. Dollar (softer report) could also underpinning the Kiwi as well as steady demand for higher-yielding currencies.
On opposite direction, a return again inside of the bullish channel and bellow 200-day SMA will signal the presence of sellers. The first downside target is at 0.6541.
Trade closed: target reached:
The bullish target 0.6588 was hit at 11th Dec.
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💡 If you want to know on what basis we make our entries, get in here: t.me/trendlinefreetrade