Can the Kiwi recover? NZD/USD is finding support at the .7750 minor psychological level for now while stochastic is indicating oversold conditions. This could allow the pair to bounce, as traders book profits off this area of interest. However, if selling pressure remains strong, a downside break below .7750 could take place and lead NZD/USD to the next support zone at the .7500 major psychological mark. If you’re very bearish on the Kiwi, you could wait for a breakout opportunity and aim for .7500. Make sure you review our lesson on Trading Breakouts if you’re shorting!
Looks like NZD/JPY is just getting the selloff party started! The pair just formed a triple top forex chart pattern on its daily chart, indicating that the previous uptrend is about to turn. Price already broke below the neckline of the formation, confirming that a downtrend is likely to follow. Stochastic is still moving lower anyway, which means that there’s enough bearish momentum to push the pair much lower. The chart pattern is roughly 300 pips in height, which suggests that NZD/JPY could be in for a 300-pip drop.
Here’s another potential Kiwi selloff that’s just kicking off. EUR/NZD has broken above the neckline of a short-term double top pattern, which was right at the bottom of the rising channel forming on its daily forex chart. Strong buying momentum could push the pair up to the top of the channel at the 1.7500 major psychological resistance or at least until the mid-channel area of interest around 1.6500. Stochastic has just reached the overbought area but hasn’t crossed down yet, which means that buyers have enough energy to push EUR/NZD a little higher.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.