- NZD/USD edged higher to hit 0.73 levels after RBNZ decided to cut cash rate by 25 bps to 1.75%, as widely expected and left doors open for more easing in the future.
- Kiwi quickly faded the entire knee-jerk spike and slipped below 0.73 handle.
- RBNZ Governor Wheeler's comments on likely intervention weighed heavily on the prices.
- Technially, we see scope for downside. 5-DMA is biased lower, along with Stochs and RSI.
- Strong support is seen at 0.7214 (20-DMA). Violation there could see further downside.
- Major support levels - 0.7214 (20-DMA), 0.72, 0.7180 (Nov 2 lows)
- Major resistance levels - 0.73/ 0.7315 (5-DMA), 0.7390 (Trendline)
Recommendation: Good to sell rallies around 0.7250/60, SL: 0.7315, TP: 0.7215/ 0.72/ 0.7180
