Sforex

Kiwi:Does the rally stop ?. NZ CPI on Thursday.

FX:NZDUSD   New Zealand Dollar/U.S. Dollar
266 0 4
Kiwi rallied 9 consecutive days and now stop at resistance zone around 0.6725

500 pips : 0.6225-0.6725 : This is a strong move I rarely see with NZDUSD             .

The secret behind this move is recovery of commodity price, dairy price found bottom support for Kiwi greatly while RBNZ absolutely will not cut rate anymore this year; Dollad weak is also a good reason behind the move.

However, the move should have a break time, a correction is understandable.

Next week, the main focus is NZ             CPI             on Thursday while we also have US CPI             and US Retail Sales.

- Technical Analysis

We could split the chart into 2 zones : Zone 1 and Zone 2

NZDUSD             sideways in those two zones last 3 months.

I see N/U broke the zone 2 and now is trading in zone 1.

NZDUSD             could choose this zone as a reaction zone next trading weeks.

Strong resistance is at 0.6725.

NZDUSD             moved above SMA100 : A level we must watch , usually a break SMA100 , trend continues , but N/U is captured by resistance zone , so we need wait for a break resistance zone to confirm the strength of trend.

I maintain the bullish view for Kiwi.

However, a correction is acceptable.

THE BEST STRATEGY IS:

- BUY AT THE BOTTOM OF ZONE 1 : 0.6500
- IF NZDUSD             BREAKS RESISTANCE ZONE : BUY AT THAT LEVEL.


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