The Asian session was particularly rewarding and this was mainly because of the associative nature of the Kiwi and the Aussie. Remember, Governor Glenn Stevens was giving out his last speech as the chairman of the board. In the minutes and the decision he gave out on why they should retain their interest rates at 1.5% was very bullish to the Aussie and that means, the Kiwi had to gain something in return-these two guys share a positive correlation. One thing that got my attention was the improvement of commodity prices and the fact that there is a slowdown in China’s bulk producers clearing the way for commodity prices to rise because of rise of demand. Well, this is good news to the Kiwi, a commodity dependant currency. We saw last week how the Kiwi rose on the news that their key exporting gem Dairy products had risen in the last GDT auction by 6% after a 12% rise on the other release. Also, talks of US rate hike, which will take centre stage- rejuvenates slumping commodity prices and this should be expected and contribute to further Kiwi bullish rally. Check out what happened from December when the Fed hike rates, 25% on gold and consequently, >12% on kiwi and Aussie.
To the charts and it is clear how the support zone rebuffed any price action trending lower. I’m looking to buy any retracement lower towards yesterday’s highs or on the downside-the support horizontal line at 0.726. My primary buy zone will have to come at 0.732-0.729 zone-a 30 pip buy zone as these areas lie between the yesterday’s high and the 38.2% Fibonacci levels. If you check, you will notice that the 161.8 Fibonacci extension line at 0.7365 has not been cleared. Usually, price tend to retrace once that level is hit but what I’m observing is price action trending lower with overbought stochastics.
My target will be to initiate buys at the recommended levels above while watching today’s Building Permits at NY open expected at 1.17M from last month’s 1.14M and then the Dairy Auction prices at a tentative time-usually around 1400GMT-1415GMT which is expected to rise from 6% recorded last.
Look to trade as follows, at the NY session with an oversold stochastics in the 15 min chart:
Buy Limit: 0.729-0.732
Stop Loss: 40 Pips on the point of trade initiation
TP: 1:3 risk reward ratio from the point of initiation
Otherwise, may the pips be with you. Have a good trading day.

NZDUSD 4HR chart-20.09.2016

Source: Dalmas Ngetich

NZDUSD 15Min chart-20.09.2016

Source: Dalmas Ngetich

NZDUSD Daily chart-20.09.2016

Source: Dalmas Ngetich

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