- NZD/USD retreated after making a high of 0.7563 and is currently trading around 0.7455.
- Kiwi is trading lower as expectations grew that the RBNZ may cut interest rates as early as next month on account of low dairy payout and weak inflation.
- Technically Kiwi is not able trade above 0.7575 and this confirms that it has formed temporary top around that level. Overall trend is bearish as long as resistance 0.7575 holds.
- On the upside minor resistance is around 0.7547 (200 day 4 HMA) and break above would extend gains till 0.7575/0.76390.
- The pair’s minor support is around 0.7465 and any break below will drag the pair further down till 0.7430/0.7380.
We prefer to sell on rallies around 0.7500 for the target of 0.7435 with stop around 0.7550.
The material has been provided by InstaForex Company – www.instaforex.com