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There were a couple of important releases lined up during the Asian session today in New Zealand. The first one was the RBNZ interest rate decision in which the central bank decided to keep the interest rates unchanged. However, the eye-catching point was the fact that the central bank was dovish more than expected. This caught the attention of the Kiwi dollar sellers, as the NZDUSD pair traded lower after the release. Moreover, the Trade balance data was also released by Statistics New Zealand. The forecast was slated for a trade deficit of $-0.98B in December 2014, but the outcome was a touch disappointing, as the deficit was $-1.15B in December 2014, compared to the same month a year ago. This again mounted pressure on the NZDUSD pair.

There was a crucial bullish trend line formed on the hourly chart of the NZDUSD pair, which was recently breached by sellers. It opened the doors for sharp downside in the near term. Furthermore, the RBNZ statement ignited more losses and the pair traded below the 0.7350 support area. It traded as low as 0.7298. There is a chance of a minor pullback in the pair as the hourly RSI is around the extreme oversold region. However, any correction from the current levels might take the pair towards the 23.6% fib retracement level of the last drop where sellers might appear again.

If the NZDUSD pair moves lower, then the 0.7300 support area might come into play. A break below the same might call for more losses towards the 0.7250 level.

Overall, one might consider selling rallies in the NZDUSD pair as long as it is trading below the 38.2% fib retracement level.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com