• New Zealand CPI undershot expectations in Q2, increasing the odds of RBNZ rate cut in August.
   
• Data released today showed NZ consumer price index (CPI) rose at an annualized 0.4% pace in Q2, unchanged from Q1, but slightly lower than the estimate of 0.5%. 
   
• The pair extended downside for the the fourth-day, hit session lows of 0.7068 before paring some losses to currently trade around 0.7090 levels.
   
• Our previous call (http://www.econotimes.com/FxWirePro-NZD-USD-breaks-below-20-DMA-at-07169-good-to-go-short-on-rallies-236426) has achieved TP1 and is approaching TP2.
   
• Recommend lowering trailing stop to 0.7170, and hold for targets. Techs are biased lower, bearish invalidation only above 0.72 levels.
   
• Immediate support and resistance are now located at 0.7060 (trendline) and 0.7166 (20-DMA).