FxWirePro: NZD/USD heads deeper into bear territory, 23.6%fib eyed

• NZD/USD edged lower on Tuesday as geopolitical uncertainty and elevated U.S. bond yields continued to support the greenback.

• The greenback has remained strong despite fading expectations of a Federal Reserve rate hike this month following weaker-than-expected U.S. jobs data..

•U.S. data released Monday showed services-sector activity slowed in September, while robust domestic demand strained supply chains and pushed up input costs, suggesting inflation could remain elevated into next year.

• Meanwhile, New Zealand business confidence improved in the third quarter despite higher fuel prices and persistent geopolitical risks weighing on the economy, a private think tank said on Tuesday.

• A net 43% of surveyed firms expected general business conditions to improve, up sharply from 8% in the previous quarter, according to the New Zealand Institute of Economic Research’s quarterly survey of business opinion.

•  Immediate resistance is located at 0.5685 (38.2%fib), any close above will push the pair towards 0.5701(SMA 20).

•  Support is seen at 0.5583 (23.6%fib) and break below could take the pair towards 0.5554(Lower BB).

 Recommendation: Good to sell around 0.5600  with stop loss of 0.5720 and target price of 0.5530