We see upside in the pair being capped by daily cloud which currently spans between 0.6737 and 0.6656.
Price action in the pair was rejected by cloud top and has edged below 200-DMA at 0.6713.
Momentum as indicated by the is definitely with the bulls, but a Stochs crossover at overbought and downward pointing imply some immediate downside.
Breaks below 5-DMA (0.6626) could take the pair to 0.6428 and then 0.6390 (rising ) support.
On the upside breaks above cloud top could take the pair to 0.6880 and then 0.69.
Data earlier this week showed GTD price index fell further this month. The economic knock-on to the dairy sector and broader economy will keep pressure on RBNZ to support the economy.
Market focus is likely to remain on the US NFP data due later today, we expect the most likely scenario to be another leg lower for the greenback.
We would go long on breaks above 0.6740, SL: 0.6620, TP: 0.6880/0.69