Interesting change on the Kiwi

Morning Dynamic traders.

Yesterday the Kiwi definitely surprised me with a big change in price and direction. Yesterday morning we had what looked to be a healthy green candle. It closed only 5 pips away from where it opened. This is very interesting and surprising, and today we are now greeted with a bearish candle.

Why did this happen?

Yesterday I posted an hour chart, and I said that price was confused.

Below I have used an hour chart again to explain this change in direction.
You will see that we have divergence on the MACD along with a sell signal, a reversal candle and price hit previous support/resistant line.
These events aren’t as clear as this on larger time frames, which is why I used the hour chart.













For a long term trade yesterday’s events wouldn’t have proved to be very profitable. If you have a more short term approach to trading and prefer smaller time frames and read the signals, you wouldn’t have had a bad day.

This is my last post of the week, but on Monday I will update todays events on the NZDUSD and round off this week with a conclusion on how NZDUSD have behaved and then we can follow another pair.

Hope you have a good weekend.

Happy Trading.