FxWirePro: NZD/USD tests 88.6% Fib, further weakness likely on break below

NZD/USD chart - Trading View 

NZD/USD hits fresh 2019 lows below 0.65 handle, bias still bearish.

Kiwi under pressure after New Zealand’s dairy giant Fonterra lowered its milk price expected range and earnings per share 

US-China trade spat worsened as US adds few more Chinese companies to its blacklist and turns down Beijing visit for trade talks.

On the other hand, the greenback holds strength after the FOMC minutes showed that most policymakers hold their “patient” approach considering moderate growth and muted inflation. 

NZD/USD trades with a major bearish bias. Scope for further downside after 'Death Cross' formation on daily charts.

Price action has tested 88.6% Fib, break below will see dip till 0.6475 (major trendline support) ahead of 0.6424 (Oct 8th low).

5-DMA is immediate resistance at 0.6507. Break above will see gains till 21-EMA at 0.6578.

US Markit manufacturing and services purchasing manager index (PMI) for May and new home sales in focus for further direction.

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