FxWirePro: NZD/USD set for a bigger drop, but close below key fibo needed

• NZD/USD edged lower on Friday as kiwi dollar reamined under pressure from a stronger greenback and expectations of further monetary easing by the RBNZ.

• Expectations for more aggressive monetary easing by RBNZ were heightened by recent data showing that the country's economy fell into recession in the third quarter.

•Analysts estimate that the Reserve Bank of New Zealand will lower by another half a percent next at its meeting on Feb. 19

• The current cash rate of 4.25% is expected to drop to 3.0% by the end of next year.

•  Immediate resistance is located at 0.5672(Dec 20th high), any close above will push the pair towards 0.5710(50%fib).

•  Support is seen at 0.5609(23.6%fib) and break below could take the pair towards 0.5553(Lower BB).

 Recommendation: Good to sell around 0.5620, with stop loss of 0.5660 and target price of 0.5550