Potential short setup brewing on the Kiwi.
The pair has failed to break it's 3 week high so far and showing a triple top formation.
This might indicate there is not much conviction from the bulls to breakout on the top and bears might take over control from here. I personally would wait for the rising support to break on the downside and price made a clear break of structure.
After a big local sell off last week on the dollar, the DXY seems to hit support, while the opposite for the ZXY is that it potentially runs in resistance.
Target: 0.6105
Alternative would be that the kiwi holds the line and breaks up. In that case a retest of the 0.63 range will be highly likely.
The pair has failed to break it's 3 week high so far and showing a triple top formation.
This might indicate there is not much conviction from the bulls to breakout on the top and bears might take over control from here. I personally would wait for the rising support to break on the downside and price made a clear break of structure.
After a big local sell off last week on the dollar, the DXY seems to hit support, while the opposite for the ZXY is that it potentially runs in resistance.
Target: 0.6105
Alternative would be that the kiwi holds the line and breaks up. In that case a retest of the 0.63 range will be highly likely.
Comment:
I might be wrong on this one, but incoming cpi could set the coming trend.
But it's notable that volume is catching up sell offs around the 0.6180 range, while tops aren't sold with high volume and slowly setting higher lows.
And boy, I was wrong about DXY. It's tanking and a solid cpi might make the dollar even tank more. But the moment of truth is closing in
But it's notable that volume is catching up sell offs around the 0.6180 range, while tops aren't sold with high volume and slowly setting higher lows.
And boy, I was wrong about DXY. It's tanking and a solid cpi might make the dollar even tank more. But the moment of truth is closing in
Comment:
If you look on the daily, price is potentially forming this huge bull flag.
NZ is officially in a recession, which could be deflationary for a currency.
NZ is officially in a recession, which could be deflationary for a currency.
Trade closed: target reached:
Target 0.63 reached.
Wrong initial call, but happy ending.
Wrong initial call, but happy ending.
ZXY local 1H