Forex Price Action – Kiwi Engulfing Bar | Sept. 26th
As the greenback gained v. majors this week, the Kiwi has formed a double bottom at a key role reversal level in .8187. The first attempt there formed a bullish pin bar which rejected price about 100pips. But a second attack on the level today stopped right on it. After forming a smaller pin bar rejection off of it, it then formed an outside bar and ended with an engulfing bar – so a strong intraday confluence of signals.
Being a 2nd failed attempt by the bears to breach .8187, I’d be interested in an intraday long on a corrective pullback into the level towards .8200 with tight stops below targeting .8242 and .8287 so keep an eye if price action shows weakness pulling back into this level.
Global Market Commentary:
Global markets fell broadly lower today with the growing concerns over Europe as Spanish 10yr bonds hit 6% on continuing talks about a Catalonian succession. Greece didn’t help out today with massive strikes and protests along with the IMF wanting write-offs on Greek debt.
The dead cat bounce in the Dow/S&P failed today and both ended lower losing 44 & 8pts respectively, while Gold recovered a fair amount of its losses late in the day, still ending down $10.00 while Silver outperformed and held on to small gains.
Although the USD gained solidly today, a lot of the gains were pared back later in the session.
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