FxWirePro: Kiwi devoid of fresh leads, cloud-top capping gains in NZD/USD, good to short rallies

 

• Kiwi reversed a part of yesterday's losses and ticks higher in Asia, completely ignoring the weakness in the Asian stocks
   
• NZD/USD edged down to 0.6628 on Thursday, after rising as high as 0.6680 the previous day, as the U.S. dollar strengthened on strong employment data
   
• Uptrend in the Kiwi for the week intact, boosted in part by stabilising dairy prices seen at a global dairy auction, RSI and Stochs on weeklies biased higher
   
• But, the RBNZ at its policy meeting next week is widely expected to cut interest rates by 25 bps to 2.5 percent , in part to rein in the local dollar
   
• The pair's inability to hold above the daily cloud top also highlights downside, we recommend going short on rallies around 0.6680, SL: 0.6730, TP: 06580 

Resistance Levels:

R1: 0.6658 (Daily cloud top)

R2: 0.6690 (Daily High Dec 1)

R3: 0.6720 (61.8 Fib of Oct-Nov slide)

Support Levels:

S1: 0.6614 (Dec 2 low)

S2: 0.6584 (Daily low Dec 1)

S3: 0.6576 (10 & 55 Day MAs)