The Kiwi dollar accelerated strongly lower on Friday, extending steep bear-leg off 0.6979 into seventh straight day.
Fresh bears broke below key support at 0.6817 (former low of 27 Oct) and extended weakness to new lows, last traded in early June 2016.
Larger downtrend from 2017 high at 0.7558 is currently riding on extended third wave of five-wave sequence from 0.7558 and eyeing its FE 161.8% at 0.6750.
Meanwhile, bears may take a pause on corrective action, signaled by oversold slow stochastic on daily chart which also formed bullish divergence.
Falling daily Tenkan-sen and converged 10/20SMA’s mark significant barriers at 0.6880/0.6900 zone, which should ideally cap upticks.
Res: 0.6817, 0.6880, 0.6900, 0.6919
Sup: 0.6783, 0.6750, 0.6688, 0.6588
