- We see divergence between price action and momentum indicators - (Stochastics and making lower lows)
- Stochs have rolled over from overbought levels with a crossover
- is biased lower
Kiwi unable to extend gains beyond 0.6819 and is extending downside for the third consecutive session.
Renewed bout of risk-aversion hit markets after the PBOC slightly devalued yuan today after three back-to-back sessions of gains.
Chinese CPI figures and the RBNZ policy decision due later this week will have a major impact on the pair.
Supports on the downside are aligned at 0.6713 (Mar 4th lows), 0.6700, 0.6630 (rising ).
On the upside resistances are seen at 0.6750 (session highs), 0.6756 (Mar 3rd high), 0.6775 (Feb 26th high).
Good to sell rallies around 0.6730/40, SL: 0.6820, TP: 0.67/0.6655/0.66
We see no respite from bears for now, downside likely to extend.