The NZD/USD pair fell 1.74 percent yesterday – the biggest single-day drop since Aug. 9 – and could soon drop to 0.67 as a weaker-than-expected New Zealand labor market data has raised the odds of an RBNZ rate cut.
Hourly chart
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As seen above, the pair has found acceptance below the trendline trending north from Jan. 3 and Jan. 22 lows. Further, the 50- and 200-hour moving averages (MAs) have produced a bearish crossover. The path of least resistance, therefore, is to the downside. The relative strength index (RSI), however, has hit the oversold territory. Hence, consolidation or minor bounce could be in the offing before another wave of selling takes the pair down to 0.6707 (Jan. 22 low).
Trend: Bearish
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