The US dollar licks wounds after the Fed warned that the recovery will need more time before tapering.
The kiwi’s drop below 0.6950, a critical support from the daily timeframe, is a sign of prolonged consolidation in the coming weeks. An oversold daily RSI points to a rebound in the short term.
The pair has bounced above the psychological level of 0.7000. This comes as a confirmation of the RSI’s divergence and the bullish MA cross. 0.7100 is the next target. 0.6960 is the immediate support in case of a pullback.
