The Kiwi/Dollar Crawls Higher

NZD/USD 0.7946

The Kiwi is showing some resilience. It has not fallen but shown us it has the capacity to gap higher. Let’s look at the above daily MT 4 chart. Usually, when a Forex pair, in this case the NZD/USD, gaps higher, spaces like this are often retraced. In this case retraced lower. We do not see any definitive bearish reversal signals which makes a big correction lower unlikely. We would need this to shift our sites back at support neat 0.7655 then the key technical level at 0.7650.

Let us now look at the below quick action day trading chart, the MT 4 hour. We are noting a hammer formation below the key technical resistance of 0.80. We need to monitor the intraday charts closely now. There is some ebbing momentum at the current price level, however, there is no definitive bearish reversal indications on this chart as well. This leads me to believe that an intraday correction lower should not be in the cards as well.