FxWirePro: NZD/USD Daily Outlook

Chart - Courtesy Trading View 

NZD/USD was trading 0.43% higher on the day at 0.6281 at around 07:10 GMT. The pair has snapped a 7-day bearish streak, but upside potential seems limited.

A jump in Fed rate hike expectations of 75 bp after red hot inflation reading last week favor bears in the pair.

Elsewhere, Beijing covid cases hit a three-week high, dampening sentiment and weighing on the antipodeans.

Technical bias for the pair is bearish. Volatility is high and rising. Major moving averages are trending lower. 

GMMA indicator shows major and minor tend are bearish and MACD confirms a bearish crossover on signal line.

Momentum is bearish. Stochs and RSI are sharply lower and RSI is well below the 50 mark.

Focus now will be on US Producer Price Index (PPI) for April, expected 10.9% YoY versus 11.0% prior. 

Wednesday’s Federal Open Market Committee (FOMC) meeting and Retail Sales data from the US and China will also impact price action. 

Support levels - 0.6264 (Lower BB), 0.6216 (May 2022 low)

Resistance levels - 0.6342 (5-DMA), 0.6440 (200H MA)

Summary: NZD/USD trades with a bearish bias. Upside potential is limited. Bearish invalidation only above 55-EMA. Scope for refresh of yearly low below 0.6216.