Aussie beaten by Kiwi

 

The Australian dollar has been falling for two weeks now against the New Zealand dollar. After the better than expected job report from New Zealand the Kiwi advanced against its major peers. It managed to push the Aussie below its 50 moving average and found a two months old support level around 1.0560 (B). This support is between the 61.8 and 78.6 Fibonacci retracement levels and the course managed to bounce back from this level so far.

The Relative Strength Index was also in oversold territory, below its 30 level, supporting the pair´s advance. The first resistance level to test the rise could be around the 38.2 Fibonacci level, which is converging wih the 50 moving average. Climbing above this level further resistance would be the previous high at A. In the opposite case, further strengthening of the Kiwi could push the course through the support to the major low at the 1.0420 area (C).