FxWirePro: NZD/USD erases early gains, comments from the RBNZ policymakers weighs

NZD/USD chart - Trading View 

Technical Analysis: Bias Bearish

Kiwi fails to hold onto the early gains, NZD/USD slips lower from session highs at 0.6149 and was trading at 06050 at 05:00 GMT.

The Reserve Bank of New Zealand (RBNZ) announced a surprise 0.75% rate cut and delayed the capital requirement relating norms by a year earlier today.

RBNZ Governor Adrian Orr also turned down the odds of any further rate cuts at least for a year pushing the NZD higher.

However, comments from the RBNZ’s Assistant Governor Hawksby that the RBNZ will not announce a limit or cap on any particular unconventional tool weighed on the pair.

Broad US dollar strength also keeps downside pressure on the pair. 

Technical analysis points to further weakness. 'Death Cross' on the daily charts could support further downside.

Slight 'Bullish Divergence' on RSI and Stochs keep scope for minor upside. Decisive breakout above 200H MA (0.6261) required for upside continuation.

Major Support Levels: 

S1: 0.5992 (Mar 2006 low)

S2: 0.5928 (June 2006 low)

S3: 0.5855 (Trendline support) 

Major Resistance Levels: 

R1: 0.6147 (5-DMA)

R2: 0.6261 (200H MA)

R3: 0.6271 (21-EMA)

Summary: Major trend in the pair is bearish. Fundamentals also add to the bearish bias. Breach at 0.5992 support can accelerate downside.