FxWirePro: NZD/USD pares RBNZ-led losses on upbeat China trade data, bias bearish

NZD/USD chart - Trading View 

• NZD/USD slumps after the Reserve Bank of New Zealand's (RBNZ) decision to cut rates by 25 basis points to a new record low of 1.5%.
   
• The pair hit a session low of 0.6525 – the lowest level since Nov. 1 – immediately after the rate decision, but has since pared losses to currently trade at 0.6587.
   
• April month China’s trade balance data flashed mixed results on early Wednesday. The headline trade balance softened to $13.84 billion versus $35.00 billion forecast and $32.67 billion prior.
   
• However, a 10% year-on-year spike in imports in CNY terms which signaled an uptick in domestic demand boosted the antipodeans.
   
• That said, the technical outlook for the pair remains bearish. Close below strong trendline support at 0.6580 will see downside till 0.6486 (88.6% Fib).
   
• Immediate resistance is seen at 5-DMA at 0.6611. Break above could see upside till 0.6666 (converged 20-DMA and 21-EMA).

Support levels - 0.6555 (Lower BB), 0.6553 (76.4% Fib), 0.6486 (88.6% Fib)

Resistance levels - 0.6611 (5-DMA), 0.6666 (converged 20-DMA and 21-EMA), 0.67

Recommendation: Stay short on close 0.6580, SL: 0.6670, TP: 0.65/ 0.6485

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.