FxWirePro: NZD/USD extends gains for the 2nd straight session amid weaker US dollar

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.25% higher on the day at 0.6591 at around 05:55 GMT.

Previous Week's High/ Low: 0.6727/ 0.6529

Previous Session's High/ Low: 0.6597/ 0.6538

Fundamental Overview:

Expectations that the Fed will tighten its monetary policy at a faster pace than anticipated now seem to have dampened future growth prospects, resulting in modest US dollar weakness.

Atlanta Fed President, Raphael Bostic reinforced speculations and said that the Fed could raise benchmark rate by 50 bps if a more aggressive approach to combat stubbornly high inflation is needed.

Focus now on the release of the US ISM Manufacturing PMI later today in the NY session for further impetus. 

Technical Analysis:

- The pair is trading below 200-week MA, bias lower

- GMMA indicator shows major and minor trend are strongly bearish

- Stochs are at oversold levels and RSI is on verge of bullish rollover into neutral

- MACD and ADX support further weakness in the pair

Major Support and Resistance Levels:

Support - 0.6466 (50% Fib), Resistance - 0.6585 (5-DMA)

Summary: The pair hovers near 5-DMA and decisive break above could see further gains. Major trend is still bearish and pullbacks are likely to be shallow.