Both NZD/USD and NZD/JPY spike lower after RBNZ rate cut even though they quickly pare back some losses. For NZD/USD, breach of 0.6551 support further affirms a bearish case. That is, consolidation pattern from 0.6422 has complete with three waves to 0.6938. And, larger down trend from 0.7558 (2017 high) might be ready to resume. For now, near term outlook in NZD/USD will stay bearish as long as 0.6629 resistance holds. 0.6422 low is next target.
NZD/JPY’s sharp fall solidifies that case that corrective rebound from 69.18 has completed at 76.78 already. Near term outlook will stay bearish as long as 0.7340 resistance holds. Deeper decline should be seen back to retest 69.18 low. However, this level is close to a key long term fibonacci level. That is 50% retracement of 44.19 (2009 low) to 94.01 (2014 high) at 69.18. We’ll pay attention to bottoming signal there.
 
