Chart - Courtesy Trading View
Spot Analysis:
NZD/USD was trading 0.34% lower on the day at 0.6782 at around 04:15 GMT
Previous Week's High/ Low: 0.6925/ 0.6796
Previous Session's High/ Low: 0.6874/ 0.6797
Fundamental Overview:
Risk sentiment turns sour amid China Covid concerns and indecision over Russia-Ukraine crisis.
Chinese sees coronavirus resurgence and many cities are now under COVID-19 shutdown measures.
Fresh signs of worry seen on the Ukraine crisis as Ukraine President Zelenskyy emphasizes more Russian sanctions despite good progress on peace talks.
That said, diplomats from US and China agreed to meet in Italy for the first time since the Ukraine-Russia crisis, keeping markets hopeful.
Technical Analysis:
- NZD/USD resumes downside as price action fails to extend break above 110-EMA
- The pair has slipped below 200H MA and is posed for further downside
- MACD is on verge of bearish crossover on signal line
- Momentum is bearish, Stochs and RSI are biased lower
- Upside capped at stiff resistance at 0.6816 (converged 5-DMA and 110-EMA)
Major Support and Resistance Levels:
Support - 0.6760 (nearly converged 20-DMA and 55-EMA), Resistance - 0.6816 (converged 5-DMA and 110-EMA)
Summary: NZD/USD is on track for further downside. Dip till 0.6760 likely. Watch out for break below for further downside.
