I mentioned in my w/e analysis that the NZD/USD had printed a bullish-reversal ‘Inverted Hammer’ candle last week and to watch for any signs of bullish follow through this week. Well, it’s still early but the Kiwi might be starting to try and take flight.
NZD/USD 4hr: we are seeing another channel breakout on the 4hr time frame but caution is needed as there have been a few recent false breakouts. Traders really need to see a break and hold out of this channel on the daily time frame to be more confident with any new LONG. The 0.67 is a long term S/R level so watch for any new close and hold above that level as well to support bullish follow through:
NZD/USD 4hr Cloud: getting another 4hr Cloud break…only the second in 12 weeks and, eventually, one of these breakouts might succeed.
NZD/USD daily: the channel is a daily one so watch for any daily chart channel breakout:
NZD/USD weekly: there is always the concern that any pullback could just be part of forming a new Bear Flag but a hold above 0.67 might undermine this:
NZD/USD monthly: this chart shows the significance of the 0.67 level and how any bounce from here will be coming off the major 61.8% fib support. If so, it’s another advertisement for the merits of this major fib level!
Summary: The NZD/USD printed a bullish-reversal Inverted Hammer candle last week that pointed to possible bullish follow through this week. Watch for any new close and hold above the 0.67 level and for a daily chart channel breakout to support this follow through. Wednesday’s FOMC may impact here so monitor any new trade here with that in mind.
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