If you’re on the lookout for short-term retracement setups on the Kiwi, then I’ve got just what you need since I’m serving up a couple of retracement setups on NZD/JPY and AUD/NZD in today’s intraday charts update.
Back then the pair was just below 78.50 and we were waiting for an upside break past that price level so that we can go long. Well, the pair did break to the topside as expected.
However, the pair didn’t quite reach our target at 79.40 since them bears started counterattacked at 79.10. Might as well make the best of it, I suppose. And since the pair is pulling back, today’s play is a break-and-retest setup.
The pair will likely retrace to the broken resistance area at 78.50. But if we use our handy Fibonacci tool, however, we can see that the 38.2% retracement level is a bit lower at 78.30, so there’s a chance that the pullback could be deeper.
There’s even a risk that the pair will pullback all the way to the 78.00 major psychological level. But if the pair continues moving lower past that, then y’all may wanna think about bailing yo longs since that’s a clear sign that bears are in control.
Support at 1.0970 finally gave way and the pair slipped lower before finding support at 1.0860.
And as y’all can see, them bulls used 1.0860 to launch a counter offensive. But as y’all can also see, the pair appears to be hesitating at present since the pair is back at the broken support at 1.0970.
Resistance will probably form soon. After all, stochastic is already signaling overbought conditions and all that. However, there’s a risk that the pair may mover higher to the 50% retracement level, which happens to sit right smack on the area of interest at 1.0990.
Just note that if the pair keeps moving higher and takes out 1.1140, then that’s an early sign that bulls are taking control. Y’all may therefore wanna think about bailing yo shorts then. A trend change ain’t very likely until the pair also takes out 1.1050, however.
In any case, just remember to practice proper risk management as always, a’ight?