At the moment, the Kiwi is trending at a very important technical level when you observe it from the monthly chart. To begin with, price action has retraced to the 38.2 Fibonacci level and interestingly, march highs at 0.684-where price was really overextended with a whole candlestick forming above the upper BB and that eventual reversal. We expect this region to be our region of support and this is why:
Over the last couple of day, price has been moving high relative to the lower BB in the daily chart which eventually resulted in those two dojis-on Thursday and Friday. If there is a reversal here, which is most likely, then it will be the last leg of the W-formation and will likely result in the break above July’s high at 0.73 with our target TP being at 161.8 Fibonacci extension at 0.75 forming a confluence with yearly 23.6 Fibonacci level-visible in the weekly chart.
In the 4HR chart, there are signs of reversal with a doji forming in the Asian session with the stochastics swinging in from the oversold regions. Today’s trade plan will be as follows:
Buy Limit: Close of current 4HR candle (0.699-0.701)
TP: 0.73-0.75 (with Trailing Stop)
Have a good trading day.