Forex: Kiwi slips for 7th day vs. dollar

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Forex: Kiwi slips for 7th day vs. dollar

FITITOL--> FXstreet.com (San Francisco) - The NZD/USD pair is in a free-fall mode as commodity currencies are broadly weaker, with risk averse investors seeking shelter in the safety of USD on Greek political fears.

Since breaking below consolidation support and the 200-day SMA at 0.8060, NZD/USD managed to slide to a fresh 4-month low of 0.7856 on Tuesday, closing the North American session down 0.9% on the day at 0.7875. The price action resulted in the formation of a bearish outside bar on the daily chart, suggesting potential for further slides in the sessions ahead.

“As the market continues to slide and get into a short-term oversold condition, any pullback outlook should be limited to the 0.8050-0.8060 area,” comments Fan Yang, CMT, Chief Technical Strategist at FXTimes. “If the market does indeed hold below the 200-day SMA, the downside is open toward the Nove mber and Dec 2011 lows.”