New Zealand Dollar To Test 78.6% Fibo

Commentary: We wrote yesterday that "Kiwi has falied to turn higher, opening up the possibility of a test of .6869. The next potential support level would be the 78.6% at .6775 followed by the low at .6639.

Given the outlook for the Aussie, we expect one more rally leg (above .7272) before the next major bear wave." Allow for a bit more weakness towards the 78.6% at .6775 before a strong rally above .7272.

Strategy: Flat (look to get bullish close to .6775, against .6639, target above .7272