By: Colin Jessup
The Kiwi is approaching a key Weekly Support level at 0.7750 and has crossed below the 62 WMA for the first time in 6 months. Today's price action say the formation of another Bearish engulfing candle hinting that the brakes have not yet been applied on the pair's descent. In asian trading tonight, price hit a low and key support at 0.7850 where both the Weekly S1 and Monthly S3 have converged, making this a possible retracement point, or reversal, but if the price falls below 0.7840 we will probably see price fall to the 0.7750 area. A combination of recent US and NZD economic data have led to the NZD weakening against the greenback, but will it last? Above the current level of 0.7866 we have the Daily Pivot acting as resistance at 0.7902 and the Monthly S2 also acting as resistance at 0.7965 should price reverse at this level.
Happy Trading!