FxWirePro: NZD/USD erases early gains, bears eye 200-week MA at 0.6743

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.09% higher on the day at 0.6790 at around 07:45 GMT.

Previous Week's High/ Low: 0.6856/ 0.6788

Previous Session's High/ Low: 0.6856/ 0.6774

Fundamental Overview:

Antipodeans buoyed on the day after China Caixin Manufacturing PMI rose past market forecasts in December.

Data released earlier on Tuesday showed China’s Caixin Manufacturing PMI beat forecasts at 50.0 and 49.9 prior levels to print at 50.9 in December.

That said, worsening virus conditions across the globe keep risk appetite sour and check further gains in the pair.

Focus on US ISM Manufacturing PMI for December due later today in the NY session. PMI is  expected at 60.2 versus 61.1 prior.  

Major attention will be on the FOMC meeting minutes for Fed rate-hike concerns and also virus updates for further impetus.

Technical Analysis:

- GMMA indicator shows major trend is strongly bearish and minor trend is turning bearish

- Price action has closed below 20-DMA in the previous session 

- RSI is below 50 and Stochs are on verge of bearish rollover from overbought levels

- Price action has slipped below 200H MA and 5-DMA has turned

Major Support and Resistance Levels:

Support - 0.6743 (200-week MA), Resistance - 0.6816 (200H MA)

Summary: NZD/USD trades with a bearish bias. The pair is on track to test 200-week MA.