Hello Traders,

Trading at above 0.71 area, the Kiwi is trending
at a one year high and at levels not seen since June 2015 and the reason for
this is because of the unchanged RBNZ which remained at 2.25% which was against
many traders and investors expectation. Trending at the 50% Fibonacci level and
at last month’s double tops, many traders were net short another reason which
fuelled the upsurge of this pair. The main reason why interest rates remained
unchanged, according to Wheller was mainly because of the dismissal news from
the US and the fact that inflation expectations were stabilizing and some “inflatory
pressures were coming through”. However despite the upbeat press releases, the
fact that interest rates can be adjusted in the coming months remained on the
table.

Now to the charts:

Daily Chart Analysis

Technically speaking, we are in for a bullish
rally with the next zone of resistance being at 0.724 areas, at least that is
what the Fibonacci levels are indicating and it is in par with previous trading
zone trended from January-March last year. We expect this levels to be hit next
because as we can see, the upswing is strong given that the daily candlestick just
begun to hug the upper BB. The stochastics and OBV are also swinging in from
the oversold region and so, it will be prudent to maintain our longs.

4HR Chart Analysis

The upwards prevails in this timeframe with momentum
so high that price is overextended-there are two full bars which has formed
outside the upper BB. We expect some correction back to the 0.707 region before
the trend continues.

15 Minute Chart Analysis

After busting through the 161.8 and hitting the
261.8 Fibonacci levels drawn from yesterday’s Hi-Lo, we expect a price
correction because those are already two levels of resistance broken within a
short time frame and as we saw in the 4 HR chart, price is overextended. Price
might correct back to the 0.707 level-at 161.8 Fibonacci level before the trend
resumes again.

Look for buying opportunities during the NY session
as price might correct or consolidate in the European session. Watch out for Unemployment
Claims to be released at 1230GMT expected at 269K from last week’s 267K.

From my analysis,

Potential Buy zones at:

Buy Limit-0.707, TP-0.712, SL-0.704 or Buy
Limit-0.705, TP-0.71, SL-0.702

Have a pipful day

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