FundamentalOverviewThe USD extended the lossesyesterday following dovish comments from Fed’s Kashkari as he basically got inline with other members for a rate cut in September. This change of heart wastriggered by the softer than expected NFP report last Friday. Overall, the data wasn’t asbad as one might think by just looking at the reaction but given that we werepositioned for a strong report and the pricing got more hawkish after the Fed’sdecision, the weaker data was enough to trigger a quick repricing. In fact, the market is nowpricing 60 bps of easing by year-end compared to just 35 bps before the NFPrelease. It’s highly likely that more benign data will see Fed Chair Powellopening the door for a cut in September at the Jackson Hole Symposium. Nonetheless, the ISM Services PMI this week showed a new highin the prices index and the US jobless claims today could trigger a rethink onthe actual softness of the labour market in case we get strong data. Of course,weak figures will just solidify market’s expectations and weigh on thegreenback further. On the NZD side, the labour market report came mostly in line withexpectations and didn’t change much for the RBNZ pricing. The market stillexpects around 40 bps of easing by year-end with 87% probability of a cut atthe upcoming meeting.NZDUSDTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that NZDUSD bounced from the key 0.5850 support zone following the soft NFP report. The targetfor the buyers should be the downward trendline around the 0.6020 level. That’swhere we can expect the sellers to step in with a defined risk above thetrendline to position for a drop back into the key support. NZDUSD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we have an upward trendline defining the bullish momentum. If theprice were to pull back into the trendline, we can expect the buyers to lean onit to position for a rally into the major downward trendline. The sellers, onthe other hand, will look for a break lower to increase the bearish bets intothe key support zone.NZDUSD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have another minor trendline that could act as support for thebuyers. The sellers, on the other hand, will look for downside breakout to keeptargeting new lows. We can also see that the price is now trading near theupper bound of the average daily range for today. We can generally seepullbacks from such levels and in any case, the buyers would be better offstepping in around the trendlines from a risk/reward perspective. Upcoming CatalystsToday we get the latest US Jobless Claimsfigures. This article was written by Giuseppe Dellamotta at investinglive.com.