NZD/USD has been one of the worst performers, unraveling last week's gains. There was little to make of the trading day overnight with the FOMC coming up later in the week and some other major risk events before then, markets were consolidating and the bird came under heavy selling pressure as profits were taken off the board. We went from the highs of yesterday's recovery of the bearish opening gap at 0.6755 to 0.6657 lows over the course of the trading day in Europe and the US and a drift back towards the 10 min 50 sma at 0.6675, still within danger of a test of the post RBNZ surprise cut levels down at 0.6620. RBNZ to cut again? The bird has been recovering since the sell-off after the RBNZ's Monetary Policy Statement (MPS) and with them cutting the OCR by 25bp to 2.25% while signalling to the markets that there is another cut to come to take the terminal rate to 2.0%. NZD/USD levels NZD/USD is technically still in neutral territory with RSI (14) on the 1hr sticks at 40, but trades with a bearish bias below the pivot of 0.6725 and below the cluster of 1hr ma's around the 0.67 handle and level. A further slide below the 200 sma on the 4hr time frames at 0.6650 targets S2 at 0.6608 and S3 at 0.6559 there after. For more information, read our latest forex news.