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5 Jun 2013
Kiwi consolidating losses below .8050
FXstreet.com (Barcelona) - The Kiwi finished the day with steep declines, at one pointing trading as low as 0.7967 before finding support and closing down 82 pips at 0.8016.
From a technical perspective, both short term moving averages on the daily chart remain in bearish set up with price being unable to follow through above the downward sloping 9 and 20 dma’s. The RSI (14) is also in bearish set up, sitting consolidating near the 38 level and maintain the bearish zone between 20 and 60. Both of these developments may help influence a “sell the rally” type of mentality as we progress through the week.
Initial resistance now sits at 0.8058 (the 9dma), followed by 0.8130 (supply candles on daily chart). It would most likely take a close above the 0.8130 level to start turning some of the shorter term trend following indicators to neutral from bearish. First support sits at 0.7967 (previous day low), followed by 0.7935 (previous week low).
From a technical perspective, both short term moving averages on the daily chart remain in bearish set up with price being unable to follow through above the downward sloping 9 and 20 dma’s. The RSI (14) is also in bearish set up, sitting consolidating near the 38 level and maintain the bearish zone between 20 and 60. Both of these developments may help influence a “sell the rally” type of mentality as we progress through the week.
Initial resistance now sits at 0.8058 (the 9dma), followed by 0.8130 (supply candles on daily chart). It would most likely take a close above the 0.8130 level to start turning some of the shorter term trend following indicators to neutral from bearish. First support sits at 0.7967 (previous day low), followed by 0.7935 (previous week low).