Those are pretty big moves for an FX pair. On Tuesday, it was up another 0.3%, enjoying the broad US dollar weakness. The 0.70 level was last seen in June 2018.
Since the Kiwi broke above previous highs of 0.6780, it has been a nonstop grind higher. As long as the pair trades above the psychological level of 0.70, the short-term outlook seems bullish.
The immediate resistance could be
at June 18 highs of 0.7065, and if that level is broken to the upside, the rally can continue, targeting 0.7200, where spring 18 lows are seen.
Alternatively, if a correction occurs, the main support is now at 0.70and if not held, the kiwi can decline toward 0.6780.
As previously mentioned, the USD is facing a very negative fundamental scenario as the Fed is debasing the greenback by money printing, and the government deficit and debt are rising vertically. Therefore, the long-term trend for the US dollar seems to remain bearish.
