The New Zealand dollar bounces off support again on Monday

The New Zealand dollar has fallen during most of the session on Monday, reaching towards the 0.70 level. This is an area that has been important in the past, but when you look at the larger consolidation pattern from the last several years, the 0.68 has more influence than this level. With this in mind, I think that we will eventually break down, but not until we can clear the 0.6980 level. That would be a fresh, new low, which of course is a very negative sign.
With the overall attitude of the markets, I do believe that the US dollar will continue to strengthen longer term, but I also would be patient and wait for a short-term rally to show signs of exhaustion that you can take advantage of as the market has been very choppy as of late, so we are probably trying to take advantage of some type of buildup in momentum to the downside. Higher interest rates in America have of course helped the markets favor the downside, but I think that the commodity market should also be paid attention to, because they course have their usual influence on the kiwi dollar. In general, I think that selling rallies that show signs of exhaustion is probably the best way to go in this market, as we have certainly seen a lot of negativity as of late. However, with the oversold conditions we at the very least will be consolidating in the short term.