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FxWirePro: NZD/USD downtrend loses steam but outlook strongly bearish

• NZD/USD edged higher on Thursday as markets absorbed Nvidia’s strong earnings and digested the latest Federal Reserve meeting minutes. • The minutes showed Fed officials remained uneasy about inflation, yet proceeded w…

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FxWirePro: NZD/USD downtrend loses steam but outlook strongly bearish
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•  NZD/USD edged higher on Thursday   as markets absorbed Nvidia’s strong earnings and digested the latest Federal Reserve meeting minutes.

• The minutes showed Fed officials remained uneasy about inflation, yet proceeded with a 25 bps cut to the federal funds rate, underscoring a delicate policy balance.

•September U.S. non-farm payrolls, due Thursday, will help shape expectations for the December FOMC decision, with traders positioning ahead of a heavy U.S. data flow.

•Downside risks remain open toward the 0.5485 support, and selling rallies continues to look like a sound strategy amid persistent Kiwi weakness.

•New Zealand’s October trade balance releases on Friday, followed by the RBNZ monetary policy meeting next week, both key for near-term direction.

•  Immediate resistance is located at 0.5677(38.2%fib), any close above will push the pair towards 0.5684(SMA 20).

•  Support is seen at 0.5589 (23.6%fib) and break below could take the pair towards 0.5550 (Lower BB).

 Recommendation: Good to sell around 0.5630, with stop loss of 0.5700 and target price of 0.5560

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