The kiwi is continuing its good form but is there anything more to the run higher?
Price is trading at over one-month highs at the moment as buyers are looking to challenge a break above the 38.2 retracement level @ 0.6428.
However, from hereon, buyers may find it tougher to chase a run higher as key resistance levels sit in between 0.6444 to ~0.6500.
The September highs around 0.6444 to 0.6451 will be the first key test before minor resistance around 0.6465 and then the 100-day MA (red line) @ 0.6482. Looking beyond that, there is the 50.0 retracement @ 0.6497 as well as offers lined up at 0.6500.
That is quite a number of key resistance levels for buyers to look and challenge over the coming sessions with NZ business confidence data and Fed decision due next week.
Those will be key factors to watch out alongside trade headlines that could potentially impact risk sentiment in the short-term.
For now, the near-term momentum continues to side with buyers but with key resistance levels up ahead, I reckon buyers will need some solid backing from fundamentals and the risk mood to chase a further upside extension beyond 0.6480-00.
By Justin LowTue 22 Oct 2019 06:29:10
Source: Forexlive