FxWirePro: NZD/USD breaks below strong support at 0.6425, good to sell rallies

Kiwi slumped in the Asian session as data showed inflation fell 0.5% in the December quarter, much weaker than the market forecast of a 0.2% drop.

• The annual change in the CPI was just a 0.1% increase, the weakest rise in more than 15 years, mainly due to lower fuel prices, way away from RBNZ's target.
   
• As inflation continues to miss the bank's target, expectations rise for another RBNZ rate cut further weighing on the kiwi.
   
• NZD/USD has broken below strong support at 0.6425, drop till 0.6240 likely, Techs point south.
   
• The pair finds immediate resistance at 0.6433 (5-DMA), while supports on the downside are located at 0.6311 (Sept 17 lows) and then 0.6243 (Sept 7 lows).
   

Recommendation: Good to sell rallies around 0.64 levels, SL: 0.6440, TP1: 0.6310, TP2: 0.6290, TP3: 0.6240