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. - Hantec Markets experts said (rated among the TOP Forex Brokers Masterforex-V World Academy http://www.masterforex-v.com/).
