Monthly bullish divergence, one inverted head and shoulders pointing at .7705, and the eventual bearish cypher pattern projected at 0.8105, reinforcing one major trend line resistance.
The Strong Bullish Divergence
Well supported by the bullish divergence shown between August 2015 lows and the most recent one’s printed in March, we should not ignore the potential for more upside momentum for the Kiwi.
The divergence noted, may suggest that “the kiwi” completed the formation of an ABC correction in March this year, but we still need the violation above July 2017 highs to get a clear confirmation.
We have one descending trend line approaching from above as potential element of pressure/resistance, and one bearish cypher pattern projected at 0.8105 – converging with the major 38% fib retracement between the highs of 1973 and the lows from November 2000.
The inverted head and shoulders
Triggered above 0.6790 (the neck), the inverted head and shoulders should target the 200% fib extension by default, projected at 0.7705. That “will” put the price trading above July 2017 highs, and will confirm the ABC correction completed in March.