The pair is on the day struggling at the 0.67 handle. Breaks below cloud top support at 0.6667 could take the pair to 0.6650 (daily Tenkan) and further below to 0.66 levels.
Resistance was found around 0.6787 (76.4 % Fibo of Fib of Oct-Nov slide) ahead of 0.6800 ( Oct 26 high).
Stochs are at overbought and show a crossover, is also biased lower. We see further downside in the pair and would hold on to our short position
Chinese macro releases and the key RBNZ rate decision scheduled later this week likely to influence the pair. Markets are pricing in around a 50% possibility of rate cut to 2.50% on Thursday, on the back of softer outlook and lower dairy prices.