NZD/USD ignores bearish pinbar, regains poise as USD weakness persists

• Kiwi shrugs off weak NZ CPI-led bearish pinbar candle.
• Rises 0.5 percent on broad-based USD weakness.

Kiwi created a bearish pinbar candle yesterday, courtesy of a big miss on the New Zealand fourth quarter CPI release.

However, broad-based USD weakness in Asia and the resulting 0.5 percent rise in the NZD/USD pair has poured cold water on the possibility of bearish pin bar reversal. Only a negative price action today would confirm a short-term top is in place at yesterday's high of 0.7436.

That said, the dismal NZ CPI reading makes Kiwi dollar an ideal currency for contrarian traders looking to pick bottoms in the US dollar.

NZD/USD Technical Levels

Currently, the spot is trading at 0.7376 levels, having clocked a low and high of 0.7325 and 0.7385, respectively. A move above 0.74 (zero levels) would open doors for 0.7436 (previous day's high) and 0.7456 (Jul. 21 high). On the downside, breach of support at 0.7365 (Jan. 23 high) would expose 0.7325 (session low) and 0.7302 (10-day MA).