0.6608 next stop for NZD/USD bears ahead of 0.6575, sell rallies

NZD/USD retracement from 0.6787 highs hit on Friday continues. Offered tone in the pair renews ahead of RBNZ meet tomorrow. Techs point south.

RBNZ is widely expected to cut rates at tommorow's meeting by 25bps, to 2.50 percent. In the event it does cut there will likely be a "knee-jerk step down in the Kiwi.

The pair fell to session lows at 0.6622. Selloff in oil and bulk commodities also weighed heavily on commodity currencies.

Price action has been contained within the daily cloud, pair traded sideways within narrow 0.6622/60 corridor.

Breaks below trendline support at 0.6620 would bring next support at 0.6612 in focus and further below 0.6608 (50% retrace Nov/Dec rise).

Daily Tenkan at 0.6650 weighs on the topside ahead of cloud top at 0.6667 and then 0.6680 (Dec 2nd highs).

We would sell rallies around 0.6650, SL: 0.67, TP1: 0.6575, TP2: 0.65

Resistance Levels:

R1: 0.6650 (Daily Tenkan)

R2: 0.6667 (Cloud top)

R3: 0.6703 (23.6 % Fib of 0.6429 to 0.6787 rise)

Support Levels:

S1: 0.6612 (Dec 8 low)

S2: 0.6608 (50% retrace Nov/Dec rise)

S3: 0.6577 (Dec 1st low)