Is the Kiwi Set for Another Leg Lower?

The NZD/USD has been one of the weakest currencies in the last few days. There’s been some mixed data out and whenever something new hits the wires it appears the Kiwi just wants to sell off.

Relatively speaking the Aussie has held up much better and even on days when the USD has been weak, the Kiwi hasn’t performed well.

More Downside to Come

Now that we’ve cracked the 0.7200 mark I’m looking for that level to hold. On the 240 min chart we can clearly see that there’s been a bit of a retrace. However at the moment we haven’t been able to pull back above the key resistance level.

That means I’m still bearish on the Kiwi for the time being. What I want to see now is a bearish candlestick pattern to form in Asian trade. If the price action continues like it is at the moment, there is the potential for further downside into the lows.

One big word of caution – it is a quiet day thanks to NFP. I wouldn’t be holding into the release today so be cautious with your entries. However positive number might send the Kiwi spiraling.