- NZD/USD is extending downside from multi-week highs at 0.74 handle, continues downside after completion of Beraish Bat pattern.
- RBNZ decided to cut cash rate by 25 bps, held a neutral bias, causing spike in the Kiwi.
- The pair retraced gains, edged lower, has breached 100-DMA support.
- Intraday bias lower, Momentum studies have turned bearish as RSI slips below 50 mark.
- Our previous call (http://www.econotimes.com/NZD-USD-trade-idea-394565) has hit all target.
- We see continuation in the bearish bias, bearish invalidation only above 20-DMA at 0.7217.
- FxWirePro's Hourly Currency Strength Index at 0818 GMT stood as follows: NZD: -147.304 (highly bearish), USD: 108.477 (bullish), signals downside bias for NZD/USD.
Recommendation: Book partial profits lower trailing stops to 0.7217, target 0.71/ 0.7080
