I was just stepping out to the weekly chart of the Kiwi to confirm the 0.77 support level and another possible view of this chart emerged for me.
I have been tracking a potential ‘Bear Flag’ over recent weeks but now I am seeing another possible pattern and one of opposite sentiment!
Kiwi daily: showing the developing ‘Bear Flag’ and the importance of the 0.77 level:
Kiwi weekly: stepping out to the weekly confirmed two things for me. Firstly, the 0.77 level remains a key level to watch here. Secondly though, it confirmed that this chart could just as easily be seen as a bullish ‘broadening descending wedge’ as a ‘Bear Flag’! The wedge here is a rather lengthy pattern however and that may count somewhat against it:
USDX daily: apart from any RBNZ jawboning much will come down to which way the USD heads from its current resistance zone: a bullish breakout for the USD would be bearish but any USD retreat would help to support the NZD/USD.
Summary: One fact remains constant for the Kiwi: the 0.77 is a key demarcation level:
- a break and hold below 0.77 would support the Bear Flag.
- a hold above 0.77 may support any developing bullish wedge.
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