The bullish run over the past week is encountering some exhaustion
The key hurdles highlighted at the start of the week is proving to be a tough spot for buyers to break above with the 38.2 retracement level keeping a lid on gains this week.
Notably, price has struggled to climb above that to test the September highs and that has led to some exhaustion as the kiwi slips back a little today to the 0.6400 handle.
Right now, price is on the edge as it tests the 100-hour moving average @ 0.6402. If sellers can find a way to break below that, it will put an end to the near-term bullish upside in the pair since last week.
Below that, further support is only seen around 0.6370-85 before the 200-hour moving average comes into play @ 0.6352.
Looking ahead, the kiwi continues to stay pressured on the day as risk holds a little softer. Treasury yields are down to session lows right now and is pushing the likes of the aussie and kiwi lower as well.
That said, the key risk event for risk assets today will be US vice president Mike Pence's speech on China so be sure to keep an eye on that later in the day.
