Is the Kiwi Ready to Bounce? Approaching Key Support!The Kiwi took a major hit in October, dropping sharply from the 0.638 resistance level, which has held strong for over two years.
Looking at the weekly chart, we can see that the market has formed a clear range between 0.638 and 0.588—the lower level we’re now approaching.
On the daily chart, the initial drop was intense, with strong selling momentum evident in large red candles. However, as the price dropped past the halfway point of the range, momentum began to ease. This slowdown is visible in the smaller, mixed red and green candles.
This price action indicates that selling momentum is slowing as we approach the 0.588 level. In fact, the market has now started moving sideways, signaling that buyers may be accumulating at the bottom of the range.
Given these signals, I’ll be looking for buy setups using my TRFX Indicator, focusing on the 4-hour to 8-hour timeframes. Ideally, I’d like to see another dip toward or even slightly below 0.59 before entering.
The target for this setup is the top of the range, with the setup invalidated by a clear weekly break below the 0.588 support.
Let me know what you think below! :)
