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18-07-16, 04:29 #11
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Fxwirepro: Nzd/usd Extends 4-Day Losing Streak, Bias Lower, Stay Short
New Zealand CPI undershot expectations in Q2, increasing the odds of RBNZ rate cut in August.
Data released today showed NZ consumer price index (CPI) rose at an annualized 0.4% pace in Q2, unchanged from Q1, but slightly lower than the estimate of 0.5%.
The pair extended downside for the the fourth-day, hit session lows of 0.7068 before paring some losses to currently trade around 0.7090 levels.
Our previous call (http://www.econotimes.com/FxWirePro-...rallies-236426) has achieved TP1 and is approaching TP2.
Recommend lowering trailing stop to 0.7170, and hold for targets. Techs are biased lower, bearish invalidation only above 0.72 levels.
Immediate support and resistance are now located at 0.7060 (trendline) and 0.7166 (20-DMA).
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