I noted this week how the Kiwi looked like it could be setting up in a bullish ‘inverse H&S’ pattern. Whilst it was looking vulnerable when I went to bed last night today is a totally different story. The Kiwi is trading up at the breakout ‘neck line’ of this pattern ahead of NZD (due in 10 min)
Kiwi 4hr: the neck line of this bullish inverse H&S is near the descending wedge trend line. A break and hold above these two trend lines would be bullish:
Kiwi 4hr Cloud: price is also close to breaking through the top of the 4hr Cloud:
Kiwi daily: I have been noting that the Kiwi looked to be setting up in two possible patterns: one bullish and one bearish. I’m now wondering if we might see the bullish descending wedge evolve:
USDX daily: the USDX continues to stall under key resistance and any reversal here, even if only temporary, could help the Kiwi:
Summary: watch the Kiwi for any break and hold above the following regions to support a new long trade:
- inverse H&S neck line.
- descending wedge trend line.
- 4hr Ichimoku Cloud.