Kiwi claws back earlier losses as buyers continue to defend 0.8050

FXstreet.com (Barcelona) - After trading as low as 0.8061 earlier in the Asia session, the Kiwi has managed to claw back much of its earlier losses and is now down just a few pips at 0.8083.

According to Time Riddell, Head of Global Markets Research, Asia at ANZ, "the near test of the target of 0.80 (hit 0.8005) may provide scope for some consolidation, but the bias remains for a deeper flush towards 0.7925. Interim rebounds should find resistance in the 0.8220-30 area and a close above 0.8300 is needed to reduce the bias for redefining the recent low. On a medium term basis, a 0.7900-0.8300 range may develop."

“Price action above 0.8500 appears particularly top-like now (completing an inner correction off 2011’s 0.7370 low). Although the 0.79-0.80 area may provide support, broader bias will remain for deeper corrective slippage to unfold. The 0.7630-40 former highs and 0.7370-0.7460 former lows are likely to act as target zones. A close above 0.8370 is needed to suggest a different profile,” Riddell concluded