Following the prevalence of bears on Friday, the New Zealand Dollar hit the 100-hour SMA and the weekly PP circa 0.6860 early in this session and turned to the upside. During the following hours, the pair managed to appreciate 60 pips and thus reach the weekly R1 at 0.6924.

Technical indicators demonstrate a strong selling signal, especially after such a strong movement up. Thus, the base scenario favours the Kiwi halting near the weekly R1 and edging lower.

The 55-hour SMA circa 0.6880 might provide some resistance for several hours; however, a possible downside target should be the 100– and 200-hour SMAs and the weekly PP.