Chart - Courtesy Trading View
NZD/USD was trading 0.44% lower on the day at 0.6230 at around 09:45 GMT, slips lower from session highs at 0.6281.
Antipodeans under pressure as investors continued to assess risks to the global banking and financial system.
Volatility across markets subsides, but fears remain among traders even as major central banks seek to reassure markets.
Over the weekend, the Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Canada and Bank of Japan announced joint action to enhance market liquidity.
On the other side, the People's Bank of China (PBoC) kept its benchmark rate unchanged as they had already cut the Reserve Requirement Ratio (RRR) by 25 bps on Friday.
Focus now on the FOMC meeting on Wednesday. Analysts expect the Fed to hike rates further by 25 bps to tackle sticky inflationary pressures.
Markets will also pay keen attention to the forward guidance and it seems highly unlikely Fed chair Jerome Powell would undermine the potential banking meltdown.
Support levels:
S1: 0.6251 (55-EMA)
S2: 0.6216 (21-EMA)
Resistance levels:
R1: 0.6287 (Upper BB)
R2: 0.6322 (55-week EMA)
Summary: NZD/USD struggles to extend break above 55-EMA resistance. Bounce off 200-DMA in the previous week has raised scope for upside in the pair. RSI is above 50, MACD and ADX support upside in the pair.
Watch out for decisive break above 55-EMA for more upside. On the flipside, weakness only below 200-DMA.
