Kiwi traders huddle up!
We’re in for a Kiwi parade today as NZD/USD and NZD/CAD hang out at key support areas.
What do you think of these setups?
NZD/USD: 4-hour
NZD/USD has been in an uptrend for weeks but it looks like market bulls are ready for a breather after hitting the .7000 psychological handle.
The pair is now consolidating near .6900, which lines up with the “neckline” of a possible Head and Shoulders pattern on the 4-hour chart.
NZD bulls can start buying at current levels and, depending on momentum, can target the .6950 “shoulder” zone, .7000 previous highs, or even new 2022 highs for the pair.
If the pattern holds, however, then we could see NZD/USD climb to the .6950 “shoulder” zone before turning lower.
Watch this one closely!
NZD/CAD: 4-hour
NZD/CAD has broken below a trend line support that’s been solid since the start of February.
The 200 SMA came through for the bulls, though, and now the pair’s downswing is hitting a pause.
Are we looking at a downside breakout? Or just a dramatic pullback from NZD/CAD’s uptrend?
A clear bounce from the 200 SMA could put NZD/CAD back above its trend line support and boost the pair up to the .8800 previous highs.
If you see NZD/CAD trade below the 200 SMA, though, then you better get ready for possible trips to the .8575 or .8500 previous inflection points.
