The last couple of days of trading shows that there is clearly a resistance that has built up at $0.7740.
This has capped the rally in the past two weeks and is holding back a move towards the key January high at $0.7890. Unlike the Aussie which exploded higher yesterday, the Kiwi seems to be a little more constrained.
The daily momentum indicators cannot quite seem to breakout either with the RSI bumping its head up against the 60 level repeatedly. It also seems as though the MACD and Stochastics cannot break the shackles either. Even though the near term outlook is positive, this still leaves me concerned that this remains a bear market rally that is likely to be sold into. I would therefore look at playing small near term long positions but ultimately be ready for a bigger short position should a medium term sell signal come through.
The intraday chart shows the hourly RSI consistently coming back to 50 in the past few days and has been a signal to buy, with near term support at $0.7655. Key near term support comes in at $0.7600 - Hantec Markets experts said (rated among the TOP Forex Brokers Masterforex-V World Academy http://www.masterforex-v.com/).
