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FxWirePro: NZD/USD momentum remains negative, reinforcing the overall bearish market

• NZD/USD declined sharply  on Friday  as kiwi  was undermined stronger greenback and   prospects of aggressive policy easing by RBNZ.

• Markets are anticipating a 50bps reduction in the RBNZ's cash rate, with expectations that it will be lowered to 4.25% at the upcoming monetary policy meeting next week..

• The dovish pricing contrasted with market expectations for the Reserve Bank of Australia, where a first rate cut is not fully priced in until July next year.

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• At (GMT 06:00) Kiwi dollar was trading at up 0.52 % at 0.5828 against the U.S. dollar. 

•  The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negitive.
 
•  Immediate resistance is located at 0.5884(5SMA), any close above will push the pair towards 0.5935(38.2%fib).

•  Support is seen at 0.5822(23.6%fib) and break below could take the pair towards 0.5793 (Lower BB).

 Recommendation: Good to sell around 0.5830 with stop loss of 0.5900 and target price of 0.5760

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