The recovery bulls will be looking at the chart of the Kiwi and note that the price action of the last few days has formed a pretty well defined “Morning Star” candlestick pattern (strong negative, neutral, strong positive across 3 sessions). This would suggest that there is a near term recovery on the way, especially to be confirmed by a positive candle following up today. There has been an uptick on the daily Stochastics momentum indicator, although there would ideally be more confirmation across RSI, although the MACD histogram is at least moving in a positive direction. It is perhaps not a coincidence that yesterday’s closing level was at $0.7176 which is within 2 pips of the old key low and also the open of last Friday. That would suggest this is a key near term level. I would also be looking at yesterday’s high which was bang on $0.7200. If these levels can be breached by the bulls (in addition to breaking a near 3 week downtrend) then there is potential for a recovery move back towards initial resistance around $0.7270. Near term support has built around $0.7130/$0.7150 and ideally needs to remain intact.

The Kiwi is under pressure once more. Over the course of the past week, the Kiwi has been one of the worst performing major currencies and this has not been helped by a sharp move to the downside today (in the wake of worse than expected unemployment data).

It now looks as though the support for the Kiwi that was formed yesterday has only been temporary and the pressure is growing to the downside. This could result in a test of the key near to medium term low at $0.7390 which is the April low.

On 29 September, the dollar NZD> New Zealand dollar weakened sharply against the dollar by 1.44% and reached a minimum value of 15 months after the data of the Reserve Bank of New Zealand (RBNZ) to sell http://www.masterforex-v.com/admin/index.php?env=-popups/editor:m0--1--s-14:news-0-1---t14&TargetField=news[0][NewsBody]&pass_through=TargetFielda significant amount of the New Zealand dollar in August.

On Tuesday, the pair NZD / USD has once again updated the lows and snaps under the important support level 0.8080. Nevertheless, further decline was not followed, and since the opening of trading on Wednesday, the pair returned to 50% of yesterday's movement. The general mood remains bearish: the values ​​of technical indicators point to a distinct advantage of sellers. To confirm the ability of the pait to continue declining at a marked level of support, it is necessary to wait for fixing weekly candle below it.

As part of the consolidation movement below the upper border of the channel dollar NZD> New Zealand Dollar slightly turned and headed down to support level 0.8085. Blue line on the graph is designated 100-period simple moving average, built on the basis of the closing price (close). Red line indicates the 50-period moving average, built on the basis of the closing price (close).