FxWirePro: NZD/USD spike post-RBNZ short lived, pares gains to trade largely muted, bias higher

• RBNZ left its official cash rate (OCR) unchanged at 2.00% as widely expected.
   
• In the statement, the c.bank noted that a decline in NZD is needed and added that further easing will be required.
   
• Comments from Fonterra’s CEO also weighing on the kiwi as he noted that strong NZD is not in Fonterra’s favour. 
   
• NZD/USD spike to session highs at 0.7365 was short lived, the pair drops to trade largely unchanged on the day.
   
• Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-closes-bearish-gap-but-struggles-at-20-DMA-intraday-bias-higher-306148) has achieved TP1.
   
• Bias remains higher as long as downside holds 20-DMA support at 0.7307. Violation there could see test of trendline at 0.7275.
   
• Major support levels - 0.7315 (session low), 0.7307 (20-DMA), 0.7275 (trendline), 0.7240 (double bottom Aug 19 & Sept 15)
   
• Major resistance levels - 0.7369 (session high), 0.7380 (Aug 26 high), 0.74, 0.7413 (Sept 9 high)
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Recommendation: Book partial profits, raise trailing stops to 0.73, hold for targets.