Kiwi hit new 2019 low after RBNZ rate cut
The Kiwi dollar fell to new six-month low at 0.6525 on Wednesday after the New Zealand central bank (RBNZ) cut interest rates by 25 basis points to fresh record low at 1.5% and hinted one more rate cut this year.
Spike to new low was followed by quick bounce that sent the price back and above key supports at 0.6580 (lows of 24/25 Apr).
North-turning daily momentum and stochastic suggests bears may stay on hold for consolidation, but overall bearish structure favors limited upticks (ideally to be capped by 10SMA at 0.6629), before bears resume, as thick weekly cloud weighs.
Bears need close below cracked supports at 0.6580 and 0.6552 (Fibo 76.4% of 0.6424/0.6962) to signal continuation and expose very strong support at 0.6424 (2018 low, posted 8 Oct).
Close above 10SMA would delay bears and open way towards pivotal barriers at 0.6665 (falling 20SMA) and 0.6684 (30 Apr lower top).
Only firm break here would sideline bears and signal stronger correction.
Res: 0.6612; 0.6629; 0.6665; 0.6684
Sup: 0.6580; 0.6552; 0.6525; 0.6500