NZD/USD trades largely range-bound on the day after price action was rejected at cloud top by 0.6616.
- Markets seem to have intensified expectations for the RBNZ to cut OCR this year, following a slump in NZ business confidence and inflation expectations.
- Doji formation seen on Monday's candle, pair faded minor-recovery attempts today and currently trades at 0.6598.
- Downside in the pair looks vulnerable, we had recommended shorting rallies.
- Immediate resistance on the upside is seen at 0.6615 (Cloud top), and then at 0.6637 (5-DMA). Bearish invalidation only on breaks above 200-DMA at 0.6645.
- On the downside 0.6565 is strong support (Double bottom Feb 29th and Feb 19th), and then 0.6553 (Feb 17th lows).
Recommendation: Hold earlier call (http://www.econotimes.com/FxWirePro-Huge-gap-down-open-in-NZD-USD-downside-vulnerable-169183) for targets.
