Kiwi (NZDUSD) consolidating at 0.71 vs the Dollar

While lot of new trading ideas can be generated on numerous currency pairs, it would enhance their validity if we take a step back and review strategies presented earlier; analyse if they really worked as were predicted. Lets take a pick of $NZDUSD bearish call made couple of weeks earlier in $NZDUSD Analysis.

We made short call at purple vertical line (February 1), not very long ago! Very clear diverging downward channel, within which a completed BAT pattern (XABCD) formation. The Kiwi tried to break the resistance slope line, and jumped up until 0.73755 on February 6 before plummeting to current level of 0.71895. Currency is currently consolidating within a narrow range, before picking direction, most likely bearish further.

Both Support and Resistance levels are indicated in the chart for a move south or north. 50-Day SMA coincides with Support at 0.71052 making it an area of consolidation/bounce sideways before candle formations ahead. Volumes and Interest remain high.

In general, the Dollar (along with all major currencies) remain volatile given economic conditions as well as approaching US FED (Federal Reserve) speeches this week. USD Fed's Chair Janet Yellen appears before Senate Banking Panel at 8:30 PM (IST), Impact of this remains high.

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