FxWirePro: NZD/USD extends gains above 21-EMA, Kiwi unfazed by ANZ milk-price forecast downgrade

NZD/USD chart - Trading View 

NZD/USD was trading 0.27% higher on the day at 0.6059 at around 04:38 GMT.

ANZ, in its latest report, revised down the Fonterra 2020-21 season milk price projection to NZD5.75/kg milk solids vs. NZD6.45/kg previous estimate.

While the Kiwi was large unfazed by ANZ milk-price forecast downgrade, the pair pushed higher amid broad-based US dollar weakness.

A slew of economic data (Listed above) scheduled on both the sides which could impact price action.

Technical studies do not show a clear directional bias for now. Bias tilted in support of bears.

Price action is struggling to hold breakout at daily cloud. Decisive breakout above 55-EMA could change near-term dynamics.

On the flipside, the pair is holding support at 21-EMA, breach below will see more weakness.

Major Support Levels: 

• S1: 0.6040 (nearly converged 21-EMA and trendline)
• S2: 0.5960 (38.2% Fib)
• S3: 0.5938 (Lower BB)

Major Resistance Levels: 

• R1: 0.6083 (5-DMA)
• R2: 0.6101 (55-EMA)
• R3: 0.6112 (50% Fib)

Summary: Technical analysis is inconclusive. Focus on economic data for direction.