Continuation for Kiwi Ahead Of RBNZ?

May 20

Kiwi showed a robust continuation candle last week on the daily chart. The price recovered above the 0.6085 resistance level and finished the week above the 0.61 area, suggesting a potential continuation pattern unfolding in the middle of an impulsive recovery. This week, the Bank of New Zealand's interest rate decision is anticipated, and they are not expected to implement any cuts this year. Their relatively "not dovish" stance might keep the pair in recovery mode, especially considering the recent downside movement in US yields that was bullish for USD, and the positive performance of stocks. Higher stock prices and risk-on flows could be supportive for Kiwi. A closer look at the Elliott wave structure indicates the possibility of at least one more push higher, potentially reaching up to the 0.6200 area for wave C/3.