FxWirePro: NZD/USD breaks major support at 0.7070, on track to test 50-DMA

• Kiwi extends downside for the fifth consecutive session. Techs are heavily bearish, we see no signs of reversal.
   
• RBNZ announced earlier today move to quell the country’s housing boom by restricting the amount of money property investors can borrow.
   
• Governor Graeme Wheeler will now be free to respond to persistently weak inflation by cutting the official cash rate on Aug. 11.
   
• On the daily charts, NZD/USD has breached another major support at 0.7070 levels and we see scope for test of 50-DMA currently at 0.6993.
   
• Downside in the pair has currently stalled at 0.7013, a minor correction to 0.7033 levels seen.
   
• Fonterra GlobalDairyTrade (GDT) auction awaited, forecast is for softer prices.
   
• Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-20-DMA-at-07169-good-to-go-short-on-rallies-236426) has achieved all targets.
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Recommend lowering trailing stop to 0.7070, target 0.6990.