The kiwi has entered a period of consolidation in a gradual bullish channel, with the pair easing for the most of the previous week. We believe that the pair will accelerate higher in the next days, mainly due to the renewed US dollar weakness as some headline data are expected in this week.
Therefore, we look to buy dips on the pair, with the preferred entry area around 0.6620 – 0.6630, where many supports are converged. All three main moving averages are seen here, along with the support line from January lows and also the lower bound of the current consolidation channel.
How to trade this idea:
Use the buy limit order placed at 0.6625. Place the stop loss at 0.6570 and the take profit should be placed at 0.6705.
The market did not decline to our buy limit order and moved higher since Sunday, therefore, open position was initialized.