FxWirePro: NZD/USD extends retreat from 1-month highs, on track to test 200-DMA support

Chart - Courtesy Trading View 

NZD/USD was trading 0.88% lower on the day at 0.6190 at around 11:15 GMT, bias is turning bearish.

The Reserve Bank of New Zealand said on Tuesday it saw no immediate need to request the reinstatement of a U.S. dollar swap line that expired in 2021, weighing on the kiwi.

Further, antipodeans under pressure as investors continued to assess the impact of the recent global banking turmoil.

Caution prevails ahead of Wednesday's FOMC meeting where the market anticipates a 25 basis point (bps) rate hike.

Major attention will be on Fed Chair Jerome Powell's press conference, for any unexpected comments that could trigger market volatility.

Support levels:

S1: 0.6159 (200-DMA)

S2: 0.6094 (Lower BB)

Resistance levels:

R1: 0.6214 (21-EMA)

R2: 0.6249 (55-EMA)

Summary: NZD/USD has failed to extend break above 55-EMA. Price action has slipped below 21-EMA and is on track to test 200-DMA. Break below 200-DMA will plummet prices. Bearish invalidation only above 55-EMA.