FXstreet.com (Barcelona) - The New Zealand Dollar has gone through a sharp recovery after bouncing at 0.6600 on Wednesday, as the pair rose from levels around 0.6700 to 0.6775, high so far, right below Tuesday's high at 0.6778.

However, according to Greg Holden, technical analyst at ForexYard, the Kiwi has entered into overbought territory in daily and weekly chars and some downward move could be ahead: The daily and weekly charts show the price floating in the over-bought territory of their respective RSIs. A bearish cross on the weekly Slow Stochastic has also just formed, indicating that this pair is due for a strong downward movement giving forex traders a great opportunity to call the reversal and ride out the downward wave for some hefty profits.