FxWirePro: NZD/USD recovery capped at 21-EMA, scope for further downside
NZD/USD chart - Trading View
NZD/USD recovery was capped at 21-EMA, the pair has slipped lower from session highs at 0.6598 and was trading at 0.6570 at around 10:30 GMT.
Kiwi remains under pressure after the Reserve Bank of New Zealand's (RBNZ) outright dovish stance.
The Reserve Bank of New Zealand kept the official interest rate unchanged at 0.25% and left the doors open for a potential cut to negative territory in the future.
The central bank boosted the large scale asset purchase program (LSAP) by NZD 100 billion.
Technical indicators have turned bearish. Bearish divergence adds to the downside bias.
Recovery attempts lack traction. Upside capped at 21-EMA and major trendline support turned resistance.
GMMA indicator shows near-term bias has turned bearish. Bears eye cloud support at 0.6476. Breach at cloud will see dip till 200-DMA.