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Kiwi, King of Currencies: NZD/JPY, NZD/USD, GBP/NZD

 

There are many opportunities to urge long for traders who are bullish the Kiwi

Last week, the Federal Reserve Bank of latest Zealand (RBNZ) left rates unchanged, left their bond buying program unchanged, and introduced a replacement loan facility…all needless to say . additionally , financial institution Governor Orr signaled they weren't considering negative interest rates. That news, combined with only alittle cluster of coronavirus cases within the country in Auckland, has the New Zealand Dollar on a tear higher and hasn’t looked back.


NZD/JPY


After fixing series of upper lows, NZD/JPY jumped above prior resistance and hit levels not seen since January, near 72.79. After doing so, the pair pulled back to the breakout level at 71.00 and consolidated because the RSI moved back to neutral territory on a daily timeframe.On the 240-minute timeframe, NZD/JPY is consolidating during a pennant like formation. The target for the breakout of a pennant is that the length of the flagpole added to the breakout point of the pennant, which might target near 75.00. However, await horizontal resistance dating back to April 2019 near 74.75.Much of an equivalent are often said for NZD/USD. After fixing a series of upper lows inside a channel, the pair broke out above previous highs slightly below .6800. The pair only pulled back slightly because the RSI moved from overbought conditions back to neutral on a daily timeframe. However, with NZD/USD continuing to push higher, the RSI has moved back above 70 into overbought conditions. 


The pair had been during a channel since early July. The target for the breakout of a channel is that the height of the channel added to the breakout point, which during this case is near .7050. However, the pair first will need to get through horizontal resistance from highs of early December 2018 near .6969 and therefore the psychological resistance level of .7000. Bulls are going to be looking to shop for any pullbacks. Support isn’t until breakout level back near .6800.


GBP/NZD


GBP/NZD may present the simplest opportunity for Kiwi bulls. On a daily timeframe the pair has been moving lower since April. However, with Brexit uncertainty, the pair hasn’t broken lower below support. GBP/NZD bears (bullish New Zealand dollar) are going to be closely watching an opportunity below the rising trendline near 1.9095 for opportunities to feature to short positions. However, trading this pair also bring Brexit headline risk along side it.There are many targets one can bring a breakdown of GBP/NZD (including near 1.8100 on a daily timeframe!). However, on a 240-minute timeframe, an opportunity below 1.9095 would target the preceding low near 1.9053. Below there would target the July lows near 1.9000 then the 127.2% Fibonacci extension level from the September 18th lows to the October 22nd highs near 1.8840. 


There are many opportunities to urge long for traders who are bullish the Kiwi. Traders got to confirm to use proper risk/reward for every trade.


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