FxWirePro: NZD/USD comatose around 200-DMA, bearish divergence keeps scope for downside

NZD/USD chart on Trading View used for analysis

• NZD/USD extends range trade for a second straight session, intraday bias neutral.
   
• Caution prevails ahead of this weekend’s key meeting on trade between the US President Trump and his Chinese counterpart Xi.
   
• The bullish momentum has continued fading and we see and increasing risk of a downward extension.
   
• 200-DMA is major resistance at 0.6864 and any further upside only on breakout above.
   
• We evidence a bearish divergence on RSI and Stochs which adds to the bearish bias.
   
• Data on Thursday showed US core PCE inflation increased less-than-expected in Oct, by 1.8% YoY, while unemployment claims were up 234K in the week ended November 23.     
   
• On today's macroeconomic calendar focus will be on US Chicago PMI, expected at 58.0 from the previous 58.4.

Support levels - 0.6830 (5-DMA), 0.6792 (20-DMA), 0.6774 (21-EMA)

Resistance levels - 0.6864 (200-DMA), 0.6887 (Nov 28 high), 0.69

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