The August fall is now likely a throwback in preparation for test of 2009 high. This is revealed by the weekly chart. In a positive scenario, target and resistance zones for the NZDUSD is likely to be the August 2010 high, followed by the January 2010 level and then finally October 2009 .

Weekly chart of NZDUSD shows base building to challenge 2009 high

If it falls below the trendline again, we could see a resumption of fall.

In the big picture, August fall is merely a retracement

To find out more, you can join our free forex seminar where we are going to showcase Tflow®.

We illustrate with Tflow® how to plan and predict the trade on KIWI before it even happen. Private Posting, only for Tflow® Graduates

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

Only registerd users (ie TerraSeeds Tflow® graduates) can view this post. Graduates please log in with your UID and password that you use for Forum. Find out how you can be part of our privileged trading community. Email forex@terraseeds.com

The Kiwi (NZDUSD) is slowly picking up an up trend move and could be facing some resistance soon.

This is shown on the daily chart as it forms an upward equi-distant channel. The dramatic movement on 6 May created a big long legged doji, which could hint the top of the equi-distant channel is a Resistance Zone for NZDUSD.

Daily Chart of NZDUSD

The 4 hourly chart trend analysis shows that the current up swing is steep and the upward momentum might break the resistance zone.

However, if the up swing fails on the resistance, it is likely to find support on the lower of the equi-distant channel.

4 Hourly Chart of NZDUSD

New Zealand is going to announce cash rate  on Thursday morning, 5 am Singapore time.

Base on Tflow®, you could almost preduct the direction. This is because Tflow® is predictive.  Yes, we simplified Elliott Wave and combine with Advance Fibonacci where we can at the point that we open a trade, know our profit and stop loss.

This week prominent channels being reinforced.

This Euro channel is steep and might be defied soon

Kiwi may be strong enough for a rally

Sterling showing the downwards channel as well

Major currencies continue to lose against the dollar. On a week-by-week basis, we saw that the following:

• Make new lows – EURUSD, AUDUSD, GBPUSD, AUDJPY, EURGBP, EUDJPY
• Made new highs – USDJPY, USDCHF
• Stay in range – NZDUSD

Late week, we see EURUSD, GBPUSD, AUDUSD and the NZDUSD find support on thursday and friday. When trading begins next week, the validity of this support may determine direction for the next few days.

Finding support for NZDUSD. Next? Test of upside.

EURUSD also find support late week

The Kiwi is hinting at a lower high on the four hour charts.  This establishes strong resistance at 0.7570~

We may be due next week to re-visit the mid week support at 0.7440 – 0.7460.

Direction: visit 0.7460

May also retry the previous high