I mentioned the potential of a Bear Flag here on the Kiwi in my recent w/e analysis. Some weaker than expected NXD CPI data seems to have kick-started a possible breakout move.
Kiwi daily: the Flag trend line is coming under pressure but traders should wait to see a daily close below this trend line for confirmation. Key 0.77 support is still below current price and could form up into 'Triple Bottom' support:
USDX daily: a strengthening USD will support a Bear Flag on the Kiwi but there is potential resistance ahead of the USD with a major triangle trend line.
- a daily chart Bear Flag breakout might be developing on the Kiwi. Traders need to confirm a trend line break on the daily chart.
- 0.77 support is still below any 'Bear Flag' breakout and needs to be monitored for potential 'Triple Bottom' support.
- USD strength will support the Kiwi's 'Bear Flag' but traders need to keep watch on potential resistance ahead for the USD.