The US dollar continues to weaken across the board from the post-Jackson Hole hangover. The Kiwi is at a crossroads as it climbs back to the daily resistance at 0.7050, the origin of the previous sell-off.
A bullish breakout would prompt sellers to cover their bets and lay the groundwork for a reversal.
0.7100 would be the next target. However, the RSI’s multiple ventures into the overbought territory may temper the bullish fever.
The base of the momentum at 0.6940 is the key to keeping the recovery valid.
