NZD/USD (current price: 0.6859)
The New Zealand Dollar declined sharply against the USD for three sessions in a row after hitting the upper trend-line of the short-term advancing trend channel that we have been monitoring in recent weeks. The more than 3% fall took the pair close to the other side of the channel, currently at 0.67, below the crucial support/resistance lone near 0.687. NZD/USD remains somewhat overbought and the pair is still almost 5% higher than the 200-day MA, leaving room for further downside in the coming week.
Our assessment: The Kiwi might be in for a deeper pullback, following the strong-momentum decline of the past few days, despite the early bounce this morning.
