Kiwi clung to early gains during the Friday trading session which is represented on the chart with a Bullish engulfing candle from the $0.70100 level and it does not appear it is ready to let go in the nearest future considering the obvious – we are in a long term Bullish perspective (see weekly chart below)!
The Greenback has been on a pedestal from mid-February 2021 till last month (March 2021) when it appears to have lost the momentum and found Bottom @ $0.69500 which was immediately followed by Higher Highs that resulted in a Breakout of my Key level @ $0.70250 during last week trading session; A feat that signifies the completion of a simple reversal set-up paving the way for possible gains in the coming week(s) amidst falling US Treasury bond yields. Tendency: Uptrend ( Bullish ) Structure: Breakout | Supply & Demand | Reversal pattern ( Double Bottom ) Observation: i. The appearance of a Double Bottom pattern on the chart describes the reversal or change in trend and momentum from prior leading price action.
ii. Breakout of Key level @ $0.70250 during last week trading session is a clue that Buyers are gradually gaining momentum and strength at this juncture in the market.
iii. A Bullish engulfing candle appearing at the $0.70250 zone (1st of April 2021) which has been a Supplication area in the last 10 days signals that market participants are tending towards changing preference to support the Kiwi.
iv. There is a possibility that price might do a correction after the Neckline Breakout that might dip into $0.69850/0.70300 zone – a new Demand level for future buys.
v. This been said, conscious traders might be patient to confirm sellers are no more viable at this juncture in the market by waiting for a Breakout/Retest of $0.70400 (Supplication area) to join the rally… Trade consciously :)! Trading plan: BUY confirmation with a minimum potential profit of 350 pips. Risk/Reward: 1:8 Potential Duration: 7 to 12days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.