NZDUSD: Kiwi Fails at First Selling Zone

The New Zealand Dollar, also known as the Kiwi, moved higher overnight, despite poor macro data, but failed to hold gains and dropped shortly after to trade at 0.15% higher on the day of the London session.

Once again, the price has failed to breach July's lows at 0.6690 and dipped after testing this level. As long as the Kiwi remains below, bears are still in control, however, a consolidation could be seen in the near future.

If the price jumps beyond 0.6690, the next resistance may stand at 0.6730 and if it breaks above, the current bearish trend could be broken, with a possible relief rally toward 0.68.

The support for today's trading is at 0.6625 and if it not held, the price could decline to 0.66. There is a bullish divergence between the RSI indicator and the price, suggesting bulls could be stronger in the near future.

However, the Reserve bank of New Zealand will make a decision concerning monetary policy tonight. The outcome of the decision, combined with the FOMC meeting shortly before, could bring about larger movements on the NZDUSD pair.

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