Kiwi fans huddle up!
You’re in for a treat because we have not one, but TWO Kiwi setups to plan for.
GBP/NZD just can’t trade above the 1.9450 mark, which isn’t surprising because the area lines up with a descending channel resistance that has been limiting the bulls’ game since August 2020.The bears have more to celebrate today because the pound is also forming a possible bearish divergence against the Kiwi on the daily.
Shorting at current levels is a good bet if you believe that the pound will extend its downtrend against the Kiwi.
But what if pound bulls extend the upswing that’s been going on since the start of the year?
Watch out for a clear break above the channel and the 200 SMA, which could take GBP/NZD all the way to the 1.9750 or even the 2.0000 areas of interest.
Comdoll fans gather ‘round this showdown!Kiwi bulls are staying strong at the .8950 zone. And why not? The minor psychological level is right smack at the 200 SMA AND a channel support that’s been solid since March 2020. That’s a full year, yo!
NZD/CAD fans can start loading up them long positions at the earliest signs of bullish momentum. The .9200 zone is a good level to target though you can also eye the .9400 previous high if you’re aiming for channel resistance gold.
Good luck and good trading this one!