Having fallen sharply to below 0.8000 following the RBNZ Governor Wheelers’ comments, the Kiwi looks as though it could be headed a fair bit lower, over time, although in the short term we have now met the first objective and currently sit right on the strong support at 0.7987 (76.4% of 0.7670-0.8839 – see daily/weekly charts below). This may hold it for a while, but a break would take the Kiwi down towards the base of the channel (seen on the 4 hour chart) at 0.7970. If/when that gives way  then we are heading towards the major channel and larger degree of Fibo support (23.6% of 0.4892/0.8835 – weekly chart) support at 0.7913, which would be very strong  as it is backed up by the top of the monthly cloud at 0.7900. Once below there though, as the weekly indicators suggest that eventually it will be, there is not a low to hold it from heading towards the June 2013 low at 0.7682.
The topside looks somewhat limited and any short squeeze to 0.8000/40 looks like a sell opportunity, with a SL placed above 0.8100 or more ideally above the top of the descending channel, currently at 0.8165. The first major Fibo resistance is not seen until 0.8185 (23.6% of 0.8835/0.7985), but right now we are not going close to seeing it.
Stay short.
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The post Kiwi below 0.8000 on Wheeler comments. Where to from here? appeared first on FX Charts Daily.
The post Kiwi below 0.8000 on Wheeler comments. Where to from here? appeared first on www.forextell.com.