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Kiwi-greenback is posing for a rally as I has formed a Double top pattern (try to reach new low, fail and thus return to trade in the previous levels). Due to the volatility in the middle of the pattern we could see it as a Triple Top pattern. However, its assumptions and expectation (further appreciation) are exactly the same. It seems that Fibonacci retracements of mid to end of June sell off are playing significant role here. At the moment the pair is trading slightly below the pattern's resistance which happens to coincide with the Fibo 38.2%. Fibo 23.6% had significant impact on the pair as well.
© Dukascopy Bank SA