Hello Traders,

This week, this currency pair has been moving in a
relatively tight range of no more than 50 pips on average and as noted
yesterday, there was a strong resistance point which developed along the
0.6750-0.6780 region, a point of major confluence between the Fibonacci HiLo of
Tuesday-at 61.8 Level and Yesterday, representing its highs at 100.0 level.
With yesterday’s fundamentals, a little bit of selling pressure caused the Kiwi
to tumble to the 0.67 level, of note were the Crude Oil inventories with major
entities in the US recording a negative inventory at -5.2M from last week’s
1.3M meaning there was more demand for oil .Earlier in the day, the New Zealand
Annual budget was read out and the general outlook was positive with government
aim at reducing deficits and increasing employment in the next coming years, this
ignited a reversal and price action rebounded back to the 0.671 price level.

Let’s check out our charts for today:

Daily
Chart Analysis

If anything, the down ward trend continues with
price action is oscillating and respecting the resistance trend line which
begun from the beginning of May. Our trend line support remains strong and
indicates that price is moving sideways with a minor slope. There are a lot of
long lower wick dojis around 0.67-0.673 price level showing that this region is
sensitive and if both OBV and stochastics are pulled in, then we should expect
a short term NZD rally. Any break over and above the 0.679, we should look to initiate a buy, for now let’s
hold our shorts in this time frame.

4HR Chart Analysis

There would be a likely reversal here and a follow
through after the formation of a morning star doji at the support trend line. A
look in the 1 hour chart indicates that the stochastics are oversold and a buy
signal has been formed. OBV also have a positive slope indicating that volumes
are being added. If you are trading this time frame then initiate a buy with TP
around 0.6775-0.6785.

General outlook
is Bullish on 4 hour chart

15
Minute Chart Analysis

The Asian session has been ranging with price
action trending at the 161.8 Fibonacci level drawn from yesterday’s high low. We
should expect price to trend higher and reference should be made to the 1 hour
chart for general trend which is indicating a buy. Look to initiate buy set up as
signaled by proper indicator combination in the oversold region of the
stochastics in the direction of the trend. Special attention should be made at the
beginning of NY Session-1230 GMT when Monthly Core Durable Goods orders will be
released with 0.3%e from April’s 0.2% with Unemployment Claims at 275K from
278K last week.

General outlook
is Bullish

Otherwise,
have a pipful day as usual

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