The last couple of days of trading shows that there is clearly a resistance that has built up at $0.7740.

This has capped the rally in the past two weeks and is holding back a move towards the key January high at $0.7890. Unlike the Aussie which exploded higher yesterday, the Kiwi seems to be a little more constrained.

The daily momentum indicators cannot quite seem to breakout either with the RSI bumping its head up against the 60 level repeatedly. It also seems as though the MACD and Stochastics cannot break the shackles either. Even though the near term outlook is positive, this still leaves me concerned that this remains a bear market rally that is likely to be sold into. I would therefore look at playing small near term long positions but ultimately be ready for a bigger short position should a medium term sell signal come through.

FXStreet (Mumbai) - The New Zealand dollar bashing continues versus its American counterpart during the European session, drowning NZD/USD to fresh one week lows near 0.7750, as traders continue to digest dovish comments from RBNZ official while softer Chinese PMI continue to weigh.

NZD/USD extends below 0.7600

Currently, the NZD/USD pair trades lower by -1.50% at 0.7554, testing session lows at 0.7549. NZD/USD accelerated losses and inches closer towards 0.75 barrier after rather surprising tone to its monetary policy forward guidance by RBNZ’s Deputy Governor McDermott continues to keep the kiwi undermined ahead of next week’s policy meet.
Moreover, China's lowest manufacturing PMI in 12 months further dragged the NZD/USD pair lower. HSBC's Chinese Manufacturing Purchasing Managers' Index (PMI) slipped from 49.6 in March to 49.2 this month, according to the preliminary index reading released on Thursday. Markets had expected the index to read 49.4 in April.
Meanwhile, traders now focus on US new home sales and unemployment claims data due later in the day for fresh cues on the pair.

FXStreet (Mumbai) - The New Zealand dollar shaved-off previous gains against the US dollar in the early European trades, knocking off NZD/USD to 0.75 barrier, as the Kiwi give in to falling Aussie on China worries.

Currency pair NZD / USD has recently turned upward. This reversal occurred after the pair reached 0.7200. Upward correction from the support level 0.7200 stopped in the area of resistance, which is placed between the 0.7450 and 0.7400 resistance levels. This is clearly seen on the weekly chart of the pair NZD / USD, FBS analysts reported.

New Zealand central bank kept interest rates at current levels, but at the same time gave a reason to believe that in future we can expect its decline. This fact led to the kiwi sale off. Therefore, the New Zealand dollar fell to 0.7313. The Australian dollar followed the lead of Kiwi, which makes sense due to the possible rate reduction of the Central Bank of Australia, Forex experts said.

After last Wednesday the pair NZD / USD approached the 0.79 level, she lost an upward trend, falling to the level of 0.7754. Daily and weekly indicators still point to the prospects for reducing prices. Most likely, NZD / USD dropped to a monthly S1, reaching 0.7687.