FxWirePro: NZD/USD recovers slightly but bearish outlook persist

• NZD/USD edged higher on Wednesday  as improving risk sentiment and expectations surrounding the Reserve Bank of New Zealand (RBNZ) continue to support the New Zealand dollar..

• The RBNZ's July 8 monetary policy decision is expected to be the key near-term catalyst for the currency. Markets are closely watching both the policy outcome and the accompanying guidance for clues on the central bank's policy path over the coming months.

• Interest rate futures currently imply a 74.2% probability of a 25-basis-point rate hike. While an increase is largely priced in, the tone of the RBNZ's statement and any signals regarding future tightening will likely determine the next directional move for the kiwi.

• Geopolitical developments remain a source of uncertainty after Iran reiterated that it will not meet U.S. officials for talks in Qatar, limiting the improvement in global risk appetite and keeping investors cautious.

• Investors are also awaiting the release of the U.S. June Non-Farm Payrolls report on Thursday. Economists expect the U.S. economy to have added 110,000 jobs, with the data likely to influence expectations for the Federal Reserve's policy outlook.

•  Immediate resistance is located at 0.5682(38.2%fib), any close above will push the pair towards 0.5742(SMA 20).

•  Support is seen at 0.5632(June 26th low) and break below could take the pair towards 0.5583(23.6%fib).

 Recommendation: Good to sell around 0.5680 with stop loss of 0.5750 and target price of 0.5600