• 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
