11/23/2021
The pair is up 0.11% on the day after touching a significant resistance level as investors doubt that lawmakers will give any insight on the potential rate hikes in the December. On the other hand, New Zealand will be hiking rates and investors have been pricing in what could be up to a 50 bp raise in 2022.
Our outlook
I think it's more likely that we see an increase of demand on the kiwi when looking at the pair from a fundamental and technical standpoint for both the long and short term. Going into next year, the kiwi seems much stronger especially since the pound has been underperforming compared to other currencies. The pound hit a December 2020 low and is continuing to depreciate.
Trade Setups
Price came up to hit the top of a falling trend line in a downward channel on the 1D chart which was also matched with resistance at the 50 DMA. Rejection on the latest 1D candle indicates a potential turn to the downside which could take the pair down to the 1.91500s range.
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