By: Colin Jessup
The Kiwi continues to fall after re-testing the resistance zone of 0.7870 last week. We have broken, & closed below a support zone at 0.7750 and could possibly be heading for a re-test of the 0.7525 level seen in early October. We are seeing some support at the currently traded level of 0.7668, having been a area of both support & resistance back in late 2010 and early 2011. Price will probably struggle somewhat to get below 0.7600, and then we will possibly test the zone at 0.7475. Prices have also broken well below the 61.8% retracement level of the last bullish run from 0.7467 to 0.8240, adding fuel to the Bears forces. There will be resistance for the Bulls, should things turn around, at 0.7740, 0.7869 and 0.8000.
Happy Trading!
