FxWirePro: NZD/USD holds marginal gains, recovery capped below 55-EMA, bias bearish

NZD/USD chart - Trading View 

NZD/USD is extending marginal gains on the day, bias remains bearish.

The pair was trading at 0.6629 at 04:20 GMT, up 0.12% at the time of writing.

Consolidation seen after previous week's upbeat U.S. NFP-led slump. Recovery attempts capped below 55-EMA.

The pair grinds lower after Bearish Gartley pattern formed on the daily charts.

Stochs have rolled over from overbought levels and inverted hammer on the previous day's candle shows selling pressure at highs.

The pair finds strong support at 20-DMA at 0.6616, break below find little support till 50-DMA at 0.6589 and then 61.8% Fib at 0.6579.

Price action is extending weakness after rejection at 200-DMA. Bearish invalidation only on breakout above.

Support levels - 0.6616 (20-DMA), 0.6589 (50-DMA), 0.6579 (61.8% Fib)

Resistance levels - 0.6629 (55-EMA), 0.6653 (5-DMA), 0.6709 (200-DMA)

Recommendation: Good to go short on break below 20-DMA (0.6616), SL: 0.6655, TP: 0.6579/ 0.6545

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.