FxWirePro: Kiwi's recovery from NZ trade-balance-led sell-off looks weak, good to sell NZD/USD rallies

Kiwi recovered from fresh daily lows struck at 0.6742 in opening trades after release of NZ trade balance data.

• NZD/USD plunged almost 50 pips in a knee-jerk reaction to the poor NZ trade figures which revealed that the trade deficit unexpectedly expanded last month
   
• However, recovery remains weak on the back of persisting risk-aversion across Asia, falling oil and bullion likely to keep the bird undermined
   
• RBNZ (Thursday) will likely stay on hold, expected to take a dovish tone and could even talk down the currency afresh
   
• NZD/USD is currently trading at 0.6771, with immediate support at 0.6762 (5-DMA) and further below at 0.6741 23.6% Fib retrace Sep/Oct rise 
   
• Major trendline resistance is located at 0.6785, daily Stochs and RSI point South, pair cloud resume downtrend
   

Recommendation: Good to sell rallies around 0.6775/80, SL: 0.6810, TP: 0.6740, TP2: 0.6710