As for the E/U, it’s looking like the weekly Kiwi candle might have been on the money as well and the analysis here is very similar to that just posted for the E/U.Â
Last week’s candle was a bullish-reversal style ‘Inverted Hammer’ here too and the action so far this week has also been bullish. This gain is also significant given the sell off seen across most stock markets. There is still a possible daily chart ‘Bear Flag’ developing here though as well and so traders need to trade carefully with high impact NZD and USD sensitive data still to come this week.
Kiwi weekly: last week’s bullish-reversal ‘Inverted Hammer’ has been followed by bullish activity so far this week:
Kiwi 4hr: the Kiwi is trading higher this week but this is also mostly due to the weaker US. Note the possible ‘Double Bottom’ trying to form up here as well: Â
Kiwi 4hr Cloud: the Kiwi is above the 4hr Cloud but there hasn’t been a bullish T/K cross here either:
Kiwi daily: the daily chart shows the potential ‘Bear Flag’ pattern still building up on this pair. However, any continued USD weakness will help to support this pair. Traders need to watch the Flag trend lines here to assess any breakout move. The daily chart is also useful to help with identifying bullish targets for any potential follow through activity. The first obvious target would be 0.80, then 0.82 and then the 61.8% fib of the recent bear move near 0.84:
Summary:
- The Kiwi is trading higher, primarily due to USD weakness. Continued USD weakness will help to support the Kiwi.
- The Kiwi is possibly forming up in  daily chart ‘Bear Flag’ though and trend line breaks with momentum would help to guide traders here. Watch these trend lines with further high impact NZD and USD sensitive news this week.
- Targets for any bullish continuation include: 0.80, 0.82 and then the 61.8% fib of the recent bear move near 0.84.
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