FxWirePro: NZD/USD rangebound, markets cautious ahead of FOMC minutes

NZD/USD chart on Trading View used for analysis

• NZD/USD is extending slight weakness on the day ahead of FOMC minutes.
   
• The pair is trading 0.25% lower on the day at 0.6865 at 0645 GMT.
   
• The pair refrained to extend yesterday’s recovery as Kiwi buyers remain cautious ahead of the FOMC minutes.
   
• FOMC meeting will be released at 19:00 GMT today. Investors will look to confirm recent bearish bias on the monetary policy and balance sheet for fresh impulse.
   
• Technical indicators are neutral to slightly bullish. Price action is above cloud and major moving averages.
   
• 21-EMA is strong support at 0.6819 and we see weakness only on break below.
   
• The major trades in a 'Symmetric Triangle' pattern and breakout at triangle top to see further gains.
   
• Sino-US negotiations will remain a major risk. US diplomats are working on an MoU for the Chinese Vice Premier Hui Le’s February 20-21 visit.

Support levels - 0.6858 (5-DMA), 0.6828 (20-DMA), 0.6819 (21-EMA)

Resistance levels - 0.6930 (trendline), 0.6941 (Feb 1 high), 0.6969 (Dec 4 high)

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