Kiwi rallied 9 consecutive days and now stop at resistance zone around 0.6725
500 pips : 0.6225-0.6725 : This is a strong move I rarely see with NZDUSD.
The secret behind this move is recovery of commodity price, dairy price found bottom support for Kiwi greatly while RBNZ absolutely will not cut rate anymore this year; Dollad weak is also a good reason behind the move.
However, the move should have a break time, a correction is understandable.
Next week, the main focus is NZ CPI on Thursday while we also have US CPI and US Retail Sales.
- Technical Analysis
We could split the chart into 2 zones : Zone 1 and Zone 2
NZDUSD sideways in those two zones last 3 months.
I see N/U broke the zone 2 and now is trading in zone 1.
NZDUSD could choose this zone as a reaction zone next trading weeks.
Strong resistance is at 0.6725.
NZDUSD moved above SMA100 : A level we must watch , usually a break SMA100 , trend continues , but N/U is captured by resistance zone , so we need wait for a break resistance zone to confirm the strength of trend.
I maintain the bullish view for Kiwi.
However, a correction is acceptable.
THE BEST STRATEGY IS:
- BUY AT THE BOTTOM OF ZONE 1 : 0.6500
- IF NZDUSD BREAKS RESISTANCE ZONE : BUY AT THAT LEVEL.
500 pips : 0.6225-0.6725 : This is a strong move I rarely see with NZDUSD.
The secret behind this move is recovery of commodity price, dairy price found bottom support for Kiwi greatly while RBNZ absolutely will not cut rate anymore this year; Dollad weak is also a good reason behind the move.
However, the move should have a break time, a correction is understandable.
Next week, the main focus is NZ CPI on Thursday while we also have US CPI and US Retail Sales.
- Technical Analysis
We could split the chart into 2 zones : Zone 1 and Zone 2
NZDUSD sideways in those two zones last 3 months.
I see N/U broke the zone 2 and now is trading in zone 1.
NZDUSD could choose this zone as a reaction zone next trading weeks.
Strong resistance is at 0.6725.
NZDUSD moved above SMA100 : A level we must watch , usually a break SMA100 , trend continues , but N/U is captured by resistance zone , so we need wait for a break resistance zone to confirm the strength of trend.
I maintain the bullish view for Kiwi.
However, a correction is acceptable.
THE BEST STRATEGY IS:
- BUY AT THE BOTTOM OF ZONE 1 : 0.6500
- IF NZDUSD BREAKS RESISTANCE ZONE : BUY AT THAT LEVEL.