- 'Bearish Bat' pattern formed on NZD/USD dailies.
- The pair is extending downside from multi-week highs at 0.74 handle.
- RBNZ spike quickly faded, pair slips below 0.73 handle.
- RBNZ decided to cut cash rate by 25 bps to 1.75% as widely expected and left doors open for more easing in the future.
- RBNZ Governor Wheeler's comments on likely intervention weighed heavily on the prices.
- Technical studies are bearish, 5-DMA is biased lower, along with Stochs and RSI.
- Strong support is seen at 0.7214 (20-DMA). Violation there could see further downside.
Recommendation: Good to sell rallies around 0.7250/60, SL: 0.7315, TP: 0.7215/ 0.72/ 0.7180
Resistance
R1 - 0.73
R2 - 0.7315 (5-DMA)
R3 - 0.7390 (Trendline)
Support
S1 - 0.7214 (20-DMA)
S2 - 0.72
S3 - 0.7180 (Nov 2 lows)
