FxWirePro: NZD/USD dips below 0.60 handle, outlook bearish

Chart - Courtesy Trading View 

NZD/USD was trading 0.30% lower on the day at 0.6019 at around 06:50 GMT.

The pair briefly slipped below the 0.60 handle before paring some losses, bias remains bearish.

Weak China trade data dents antipodeans. China’s Trade Balance slipped sharply to $79.39B against the expectations of $92.7B.

Details of the report showed imports slumped to 0.3% against the expectations at 1.1% and 2.3% prior. Exports fell to 7.1% vs. estimates of 12.8%. 

Technical indicators are biased lower. GMMA indicator shows major and minor trend are sharply lower.

Momentum is bearish, Stochs and RSI are sharply lower. Volatility is high and rising. Chikou span is biased lower.

MACD and ADX support downside in the pair. Price action is below cloud and major moving averages which are biased lower. 

Looking forward, monthly prints of the US trade balance and Fed Beige Book updates will be in focus for impetus.

Support levels - 0.5958 (Lower BB), 0.5920 (May 2020 low)

Resistance levels - 0.6068 (5-DMA), 0.6112 (200H MA)

Summary: NZD/USD trades with a strong bearish bias. Scope for test of fresh multi-month lows. Bearish invalidation only above daily cloud.