The Kiwi dollar returns to red on Tuesday and hit new five-month low on persisting pressure from political uncertainty on policy steer from country’s incoming government.
Brief consolidation of broader descend on Monday was capped by broken psychological 0.7000 support. Bearish techs favor further downside, as current wave C (part of five-wave pattern from 0.7558) approaches its FE123.6% at 0.6907 and could extend to 0.6844 (FE 138.2%).
Caution on strongly oversold slow stochastic on daily chart which suggests correction in coming sessions.
Above 0.7000, next barrier lies at 0.7055 (10 Oct former low), followed by descending 10SMA (0.7075) which is expected to cap extended corrective upticks.
Res: 0.7000, 0.7055, 0.7075, 0.7112
Sup: 0.6907, 0.6854, 0.6844, 0.6817
