FxWirePro: NZD/USD erases early gains, refreshes 2-year lows amid rising odds for a full percent Fed rate hike

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.09% lower on the day at 0.5886 at around 07:15 GMT

Previous Week's High/ Low: 0.6161/ 0.5939

Previous Session's High/ Low: 0.5975/ 0.5885

Fundamental Overview:

Markets have priced in a third consecutive rate hike by 75 basis points (bps) to increase interest rates to 3-3.25%.

Also rising odds of a full percent rate hike keep dollar bid, adding downside pressure on the pair.

Upbeat Business NZ PMI data fails to impress Kiwi bulls. New Zealand Business PMI landed at 58.6, much higher than the prior release of 54.4. 

Technical Analysis:

- GMMA indicator shows major and minor trend are strongly bearish

- Price action is below major moving averages which are trending lower

- Momentum is with the bears, Stochs and RSI are at oversold territory

- MACD and ADX supports downside in the pair, Chikou span is biased lower

Major Support and Resistance Levels:

Support - 0.5843 (April 2020 low), 0.58

Resistance - 0.5938 (5-DMA), 0.6051 (21-EMA)

Summary: NZD/USD was trading with a bearish bias. The pair is poised to test fresh multi-month lows. Bearish invalidation only above daily cloud.