The Kiwi dollar was sharply down vs its US counterpart (losing 1.1%) in early trading of Wednesday, after the Reserve Bank of New Zealand left interest rates unchanged (in line with expectations) but delivered more dovish comments and forward guidance, which sparked heavy sales of NZ dollar.
Fresh drop retraced the most of 0.6049/0.6217 bull-leg and weakened a technical structure on daily chart, as the price fell below the base of daily cloud and falling momentum indicator is nearing the border line of negative territory.
Bears pressure pivotal supports at 0.6089/86 (Fibo 76.4% / 100DMA) and nearby 200DMA (0.6074), which guard key short-term supports at 0.6049/38 (Feb 13/5 double-bottom and a higher base).
Expect a partial profit-taking on oversold conditions soon, with limited upticks to provide better selling levels.
Caution on return above 10DMA (0.6154) which would sideline bears.
Res: 0.6116; 0.6127; 0.6154; 0.6177.
Sup: 0.6086; 0.6074; 0.6049; 0.6038.
