FxWirePro: NZD/USD edges closer towards 200-week MA support, focus on US NFP data for further impetus
Chart - Courtesy Trading View
NZD/USD was trading 0.58% lower on the day at 0.6773 at around 09:35 GMT. The pair is extending weakness for the 5th straight week. Outlook remains bearish, scope for further downside
USD buying ahead of key US NFP report prompted fresh selling around AUD/USD on Friday.
US NFP report is expected to show that the economy added 550K new jobs in November and the unemployment rate is forecast to dip to 4.5% from 4.6%.
Markets are convinced that the Fed would adopt a more aggressive policy response to contain stubbornly high inflation.
Fed Chair Jerome Powell's hawkish comments that 'it's time to retire the word transitory and consider wrapping up the taper of our asset purchases, perhaps a few months sooner', added to USD strength.
Further, the disappointing release of Chinese Caixin Services PMI undermined antipodeans.
- Price action is extending previous week's break below 200-week MA
- MACD and ADX support downside, momentum is strongly bearish
- Volatility is high and rising, scope for further downside
- Price action is below cloud and Chikou span is biased lower
Major Support and Resistance Levels:
Support: 0.6756 (200-week MA), Resistance: 0.6807 (5-DMA)
Summary: NZD/USD trades with a strong bearish bias. Scope for test of 200-week MA at 0.6756. Break below will open downside. Next major support lies at 38.2% Fib at 0.6702.