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FxWirePro: NZD/USD holds cloud support, retraces above 50-DMA

Chart - Courtesy Trading View NZD/USD was trading 0.47% higher on the day at 0.6824 at around 05:10 GMT. The pair has held support at daily cloud, further weakness only on break below. Price action has retraced above 50-…

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FxWirePro: NZD/USD holds cloud support, retraces above 50-DMA
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Chart - Courtesy Trading View 

NZD/USD was trading 0.47% higher on the day at 0.6824 at around 05:10 GMT.

The pair has held support at daily cloud, further weakness only on break below.

Price action has retraced above 50-DMA, oversold conditions might add further upside traction.

Major trend remains bearish, price action is below 200-DMA and any change in dynamics requires breakout above 200-DMA.

Momentum is bearish. RSI is below the 50 mark, Stochs are at oversold, but no signs of reversal seen.

Volatility is high and rising, price action is below major moving averages, scope for drag lower.

Focus now on the US Retail Sales data due later on Thursday. Market expects monthly US Retail Sales to double to 0.6%.

Major Support Levels: 

S1: 0.6781 (nearly converged 50% Fib and cloud top)

S2: 0.6721 (Converged 61.8% Fib and 200-week MA)

S3: 0.6648 (76.4% Fib)

Major Resistance Levels: 

R1: 0.6826 (5-DMA)

R2: 0.6868 (21-EMA)

R3: 0.6901 (200-DMA)

Summary: NZD/USD trades with a bearish bias, recovery attempts lack traction. Scope for test of 61.8% Fib at 0.6721. 
 

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