Kiwi pares its gains on rate cut hopes, good to sell on rallies
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.
Rangarajan H
FX Analyst
FXWIREPRO.COM
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.
Rangarajan H
FX Analyst
FXWIREPRO.COM