FxWirePro: NZD/USD hits two week low, scope for further downside

• NZD/USD hits two week low as stronger greenback and dovish expectation from RBNZ   weighed on kiwi dollar

• Dollar   extended its gains from last week on doubts about the outlook for another U.S. Federal Reserve rate cut this year.

• The Fed last week cut interest rates for the second time this year, but Chair Jerome Powell said another cut this year was "not a foregone conclusion.
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•Meanwhile,market participants await this week’s New Zealand  Q3 employment figures, with unemployment projected to hit levels not seen in nearly nine years, a trend that could justify more monetary support.

Following a 50 bps rate cut last month, investors have nearly fully factored in another 25 bps reduction in November, reflecting concerns over sluggish economic momentum and soft inflation.

• The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negative.
 
•  Immediate resistance is located at 0.5712(Daily high), any close above will push the pair towards 0.5738(38.2%fib).

•  Support is seen at 0.5680(23.6%fib) and break below could take the pair towards 0.5671 (Lower BB).

 Recommendation: Good to sell around 0.5700, with stop loss of 0.5800 and target price of 0.5660