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FxWirePro: NZD/USD momentum strongly bearish despite pause in losses

• NZD/USD eased slightly on Wednesday as traders cautiously awaited Wednesday's consumer price index report.

• The U.S. headline consumer price index (CPI) is expected to have increased by 0.3% month-on-month in December, with the core CPI rising by 0.2%, according analyst expectation. Year-on-year, headline CPI is likely up 3.

• The data follows a strong jobs report, which led traders to scale back their expectations of future rate cuts by the Federal Reserve.

• At (GMT 05:30) Kiwi dollar was trading at down  0.02% to 0.5603 against the U.S. dollar.  

•  Immediate resistance is located at 0.5632(50%fib), any close above will push the pair towards 0.5675(61.8%fib).

•Support is seen at 0.5588 (38.2%fib) and break below could take the pair towards 0.5537(23.6%fib).

 Recommendation: Good to sell around 0.5620 with stop loss of 0.5700 and target price of 0.5530
 

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