FxWirePro: NZD/USD firms slightly but bearish outlook persists

• NZD/USD strengthened on Friday as the dollar dipped amid investor concerns over a slowing U.S. economy.

• Investors are awaiting the release of delayed U.S. data following the government reopening, with expectations it may highlight a slowing economy..

• The U.S. government reopened following a record 43-day shutdown that had rattled investors and stalled economic data releases.

•  Last month’s 25-basis-point Fed rate cut came with a note of caution from Chair Powell, who highlighted the lack of data as a reason to hold off on further cuts..

• Traders are currently pricing in a 51% probability of a quarter-point rate cut from the Fed next month, down from 64% in the previous session.

 
•  Immediate resistance is located at 0.5693(38.2%fib), any close above will push the pair towards 0.5704(SMA 20).

•  Support is seen at 0.5603(23.6%fib) and break below could take the pair towards 0.5580 (Lower BB).

 Recommendation: Good to sell around 0.5690, with stop loss of 0.5750 and target price of 0.5600