FxWirePro: NZD/USD pops 'Bearish Engulfing' at highs, caution seen ahead of Fed's interest rate decision

NZD/USD chart - Trading View 

NZD/USD slumps over 1% on the day, as markets remains cautious ahead of Fed's policy meeting on Wednesday.

Fed chair Jerome Powell, said that the bank "crossed red lines" to support the economy in times of trouble. 

Investors wary if the Fed will now try to withdraw the loose money policy which may drive the dollar up.

Technical studies do not show any major signs of reversal, but oscillators are at overbought and have potential for rollover.

Sustained weakness could see dip till 200-DMA at 0.6314. Violation at 200-DMA negates any bullish bias.