NZDUSD stays on the buyer’s radar on RBNZ dayDespite the RBNZ-led volatility, NZDUSD defends the early month breakout of the 100-DMA and a downward-sloping trend line from April 05. That said, the 38.2% Fibonacci retracement level of the pair’s April-October downturn, near 0.6090, restricts the Kiwi pair’s immediate declines ahead of the aforementioned resistance-turned-support line, close to 0.6040 at the latest. Following that, the 100-DMA and a six-week-old ascending trend line, respectively near 0.6015 and the 0.6000 round figure, could act as the last defenses of the pair buyers before welcoming the bears.
Meanwhile, the pair’s upside momentum needs a daily closing beyond the monthly high surrounding 0.6205 to convince NZDUSD buyers. In that case, the 50% Fibonacci retracement and the 200-DMA, close to 0.6270 and 0.6305 in that order, will be in the spotlight. Should the New Zealand dollar remains firmer beyond the 200-DMA, the 61.8% Fibonacci retracement, also known as the golden ratio, might probe the north-run near 0.6455, a break of which won’t hesitate to challenge the tops marked in May-June around 0.6570-75.
Overall, NZDUSD is likely to remain the bull’s favorite unless breaks the 0.6000 threshold.
Kiwidollar
BEARISH IDEA ON POUND KIWI DOLLARBearish forecast on Pound/Kiwi
Guys it has been a while, today we came out to you with our Bearish idea on GBPNZD.
Pound has been trading low since Jul 2006, where I noticed falling resistance above the troughs/swings, view on W1.
We have major resistance level daily, and weekly around 2.03166, and it has been tested on 17th Oct 2022.
It bounced to weekly low around 1.95756 and from there I noticed bullish engulfing pattern and double bottom formed at the resistance level of 1.95756.
I expect another retest to the major falling resistance line however if buyers find it easy can break the yearly resistance, but the fact we are trading in a long bearish range, I expect the bearish continuation if sellers manage to drag the price low of the resistance boundary at 1.95756.
If sellers manage to break below the current support Daily TM, then we'll initiate selling to previous support level around 1.88578.
I have detected bearish Harmonic Pattern with BAT setup at the same time, where the previous resistance reached the D which initiated from C&D Leg, with this I expect more selling run to reach at least 60% of D to C leg.
I spotted the raising wedge from the price with 4H TM, which has been broken earlier, if price has to retest the broken falling wedge then we'll have to wait more, and we can expect some bullish run for few hours and days despite the fact we expect bearish movement.