While NZD/USD drops sharply after dovish RBNZ, the selloff is not that “disastrous” yet. Technically, the pair is facing a key cluster fibonacci level. They are, 61.8% retracement of 0.6102 (2015 low) to 0.7557 (2017 high) at 0.6658, and 100% projection of 0.7557 to 0.6779 from 0.7426 at 0.66528. Some initial support could be seen as this level.
But in any case, near term outlook will stay bearish as long as 0.6761 minor resistance holds. Sustained break of 0.6658 will confirm underlying bearishness and next target will be 138.2% projection at 0.6361.
NZD/JPY also resumed larger medium term down trend by breaking 74.07 to as low as 73.80. Near term outlook will stay bearish as long as 75.23 minor resistance holds. Focus is now on 100% projection of 83.90 to 76.08 from 81.55. Firm break there will pave the way to 138.2% projection at 70.74.
