FxWirePro: NZD/USD drifts lower , could be on verge of a bigger drop

• NZD/USD continued to drop on Wednesday as kiwi dollar was pressured by declining commodity prices and concerns about the Chinese economy.

• Investors awaited U.S. inflation data for further insights into the potential size of the Federal Reserve's anticipated interest rate cut next week.

.•The Reserve Bank of New Zealand (RBNZ) has already acted and is expected to implement rate cuts in October and November, with a possibility that one of these cuts could be 50 basis points.
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• At (GMT 04:45) Kiwi dollar was trading at down  0.13 % at $0.6141 against the U.S. dollar. 

•  The technical outlook remains bullish and points to eventual bigger gains, Fourteen-day momentum is positive, reinforcing the scope for a bigger gains  .
 
•  Immediate resistance is located at 0.6173(38.2%fib), any close above will push the pair towards 0.6214(Sep 4th high).

•  Support is seen at 0.6122 (50%fib) and break below could take the pair towards 0.6050(61.8%fib).

 Recommendation: Good to sell around 0.6140 with stop loss of 0.6200 and target price of 0.6060