The Candles are Pointing to a Sell in the Kiwi
Rowan Crosby • 1 min read
The Kiwi has been in focus over the last few days as we had an update from the RBNZ. They kept rates on hold, but the outlook was a little more hawkish. The NZD/USD has been doing it’s best to try and get up, but as yet it can’t really break higher.
If you take a look at the charts, you can see there are a number of candles with long wicks. What that’s telling me is that there is continued selling pressure. Every time we try and run higher, the seller's pile in and push us back down to earth.
That to me is the type of action that I like as it indicates there is some serious size that wants to be short. When they finally absorb the buyers, there might just be more downside to come.
I’d be looking very closely at selling a spike into the 0.6965 area as that seems to be where the pressure starts coming.