I've been keeping a watchful eye on the Kiwi and some of us traders may already be in this trade. It's a great looking trend and price has steadily been going up since March 09. Price is above the Value Index, which also confirms that we are in an uptrend. Price has previously broken round number after round number but since mid August it started ranging, a clear sign that the bears and bulls were fighting it out with price not knowing what to do. Yesterday we had a good sized bullish candle allowing the buyers to break above the resistance zone and The Figure.
We're at an interesting point on this pair. As you can see on the chart we have another resistance level looming above which is also at the round number. We should be wary of this and if already in a trade keeping our stop nice and close. Check your favourite indicators and see what they're telling you. You'll see stochastics is showing a false bar on the top, suggesting strength in the uptrend.
It's also worth checking in on the weekly chart - MACD is showing us divergence and we're also at a fib level. We may see consolidation after having such a long run up. It will certainly be interesting to see how this pair develops next week - will it continue up with strength, retest resistance as support before the continuation, or could this still be a fake breakout?
As the weekend approaches, take some time out to celebrate something great in your life - celebration and rewarding yourself is so important along this journey. Also ensure you analyse your trades from this week so you can learn and continue growing.
Enjoy the weekend.
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