NZD/USD (current price: 0.6811)
The New Zealand Dollar declined from above the 0.6950 level to below 0.68 in the last four days, as commodity-currencies got weaker in reaction mainly to the decline in the price of oil. Dairy prices rose by 2.1%, most in 2016 in the past two weeks, and that helped the currency in retracing some of its recent losses. It will be interesting to see whether the pair will be stuck below the line-in-the-sand resistance level of 0.687 and re-test the 200-day MA currently at 0.66.
Our assessment: The Kiwi looks ready to correct further after declining more than 200 pips in the last three sessions.
