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Technical Outlook: Kiwi Dollar At 5-Month Low, Further Easing Likely

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The New Zealand dollar remains firmly in red on Friday and broke below psychological 0.7000 support. Fresh extension of strong fall on Thursday hit new five-month low at 0.6970, with scope seen for further weakness. The Kiwi dollar is under pressure on political uncertainty while the greenback received fresh boost on hopes of implementation of President Trump's tax package. Technical studies are in firm bearish mode and favor further easing, as Thursday's long red daily candle (the pair was down 1.7% on Thursday) weighs heavily on near-term action. The pair is currently riding on the wave C of five-wave cycle from 0.7558, which broke below its FE 100% (0.7008) and could travel to 0.6907 (FE123.6%) and 0.6844 (FE138.2%) in extension. Initial resistance lies at 0.7055 (10 Oct former low), with falling 10SMA (0.7102) expected to cap corrective upticks.

Res: 0.7000, 0.7055, 0.7090, 0.7102
Sup: 0.6970, 0.6950, 0.6907, 0.6844

Author: Windsor Brokers LtdWebsite: http://www.windsorbrokers.com/
Windsor Brokers Ltd
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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