~ Week Of June 13th 2016 ~
Where To From Here For The Kiwi?
Published by Jay - June 11th 2016
One of the 10 most traded currency pairs in the world is the NZDUSD pair, which is often called "the Kiwi," due to the fact that it has the flightless Kiwi bird on one side of its dollar coin. The Kiwi has been making steady gains since August of 2015, rising in value with higher lows and higher highs forming on the charts.
On Thursday the 9th of June, price punched through a level that previously held on two occasions in April and May of this year. Looking at the 4 hour chart, we can clearly see that defined level and the fact that price has now retraced back to it. The question that needs to be asked is; will that level hold in the new trading week ahead?
When a key level is broken, the first retest can often be the most reliable, as there may be plenty of buyers or sellers still present in the market to push price in the direction of the breakout. Our bias on the Kiwi at this point in time is bullish, but we will need a confirmation signal, such as the ones we teach, before committing to a long trade.