Current trend

The Kiwi has developed a bearish momentum updating local lows capped by a risk-aversion mood which boosted the US dollar further. The position of the Kiwi looks vulnerable ahead of the Fed’s meeting tomorrow. The market is placing a high bet that Powell’s rhetoric may turn out to be hawkish again. Looking ahead, the spotlight will be on the publication of the New Zealand labor market data which is expected to face a slowdown in employment growth.

Technical analysis

The pair is falling developing a bearish signal. The price is trading below the middle Bollinger near 0.6430. RSI is above the neutral zone but heading downward indicating a cautious buy signal. MACD is preserving a buy signal. Stochastic retained a more confident decline and is heading toward the oversold area indicating a continuation of a downward correction in the ultra-short term. Breaking 0.6411 will continue the bearish trend towards 0.6381 and open the door towards 0.6350. A breakthrough here will expose 0.6304. On the flip side, a rebound above 0.6440 will bring the bulls in place to attack 0.6469 and open the door towards 0.6505. A breakthrough here will expose 0.6534.

Key levels to watch from the upside 0.6411, 0.6381, 0.6350, 0.6304– from the upside 0.6440, 0.6469, 0.6505, 0.6534.