FxWirePro: NZD/USD capped below 50-DMA, outlook bearish

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.27% lower on the day at 0.7026 at around 09:50 GMT

Previous Week's High/ Low: 0.7176/ 0.6996

Previous Session's High/ Low: 0.7080/ 0.7028

Fundamental Overview:

The Reserve Bank of New Zealand (RBNZ) is due for its last monetary policy of the year on November 24.

Markets price in a 100% chance of a 25 bps hike in the Nov meeting, and a 40% chance of a 50 bps. 

For 2022, investors are fully priced in for a 25 bps hike in February, with a 70% chance of a 50 bps hike.

A rise in US Treasury yields underpinned the greenback. Markets await US monthly Retail Sales figures, due later during the early North American session for further cues.

Technical Analysis:

- Price action is capped below 50-DMA

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

- Volatility is high as evidenced by widening Bollinger bands

- MACD and ADX support weakness

Major Support and Resistance Levels:

Support - 0.6993 (23.6% Fib), Resistance - 0.7056 (50-DMA)

Summary: NZD/USD depressed below 50-DMA, further weakness on cards. Dip till cloud support likely.