Axel Rudolph, Senior Analyst at Commerzbank, noted the Kiwi Dollar could test the 0.70 handle on a breakout of 0.6727.
Key Quotes
“NZD/USD recovered from its current September low at .6500, made close to the July 2015 low at .6497, as expected and now flirts with the 55 day moving average at .6675″.
“Once the next higher late August high at .6727 has been bettered on a daily chart closing basis, a bottoming formation will be confirmed with the 200 day moving average and the June high at .7004/61 being in focus”.
“While it and the .6497 July 2015 low underpin we will retain our overall bullish view (which still needs to be confirmed, however). Failure at 0.6500/.6497 would push the mid-November low at .6429 to the fore, a fall below which would eye the September 2015 and January 2016 lows at .6347/.6236″.
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