The kiwi has not been able to take advantage of the risk rally this week
The pair continues to do battle between the key daily moving averages this week, with price action playing a bit of ping pong - reflecting indecision among buyers and sellers.
Any downside move remains limited by the 100-day MA (red line) @ 0.6472 with further near-term support seen around 0.6450-60. Meanwhile, any upside move remains limited by the 0.6500 level as well as the 200-day MA (blue line) @ 0.6506.
The near-term bias also continues to reflect a more neutral tone, although sellers are looking to drive price below the 100-hour moving average @ 0.6471 currently. But the 200-hour moving average @ 0.6498 is also a key near-term level to watch out for this week.
In essence, price action continues to stay trapped around the key technical levels above. As such, the kiwi is largely ignoring sentiment for now and the next directional trade in the pair will likely be a break on either side of the technical levels above.
The thing to consider is that "if something can't go up on good news, then there's only one other way it will go". That may be the case for the kiwi with regards to how risk has been performing so far this week.
