FxWirePro: NZD/USD breaks below 0.66 handle, tests new two-month low

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.52% lower on the day at 0.6598 at around 10:10 GMT, slightly above session lows at 0.6581.

Previous Week's High/ Low: 0.6813/ 0.6625

Previous Session's High/ Low: 0.6736/ 0.6625

Fundamental Overview:

Broad risk-off move last week dragged most APAC currencies lower versus the USD.

The kiwi largely ignored RBNZ rate hike bets and closed below 200-week MA. 

Also, softer metal prices, on account of stronger US Dollar and a hit to demand as lockdowns in China continue, weigh on the commodity currency.

Technical Analysis:

- NZD/USD plunges lower for the 3rd consecutive session

- Price action tests 88.6% Fib, break below to see more weakness

- Momentum is strongly bearish, Stochs and RSI are sharply lower

- Recovery rejected at 200-DMA, extends previous week's close below 200-week MA

Major Support and Resistance Levels:

Support - 0.6586 (88.6% Fib), Resistance - 0.67 (5-DMA)

Summary: NZD/USD was trading with a strong bearish bias. Scope for test of yearly low at 0.6570.