FxWirePro: NZD/USD marginally higher in the Asian session, recovery lacks traction

NZD/USD chart - Trading View 

NZD/USD was trading marginally higher in the Asian session, recovery lacks traction.

The pair has paused three straight sessions of downside, but bias remains bearish.

The sentiment remains risk-averse as evidenced by risk-off action in the stock markets.

Technical analysis supports weakness. Major trend is bearish and minor trend is neutral. Upside remains capped at 5-DMA.

'Death Cross' (bearish 50-DMA crossover on 200-DMA) keeps check on upside in the pair.

Fears of a prolonged recession likely to cap gains seen in NZD. Focus on US Jobless Claims for further impetus.

Analysts expect the US initial jobless claims for the week ended March 27 to exceed 4.45 million versus preceding week's figure of 3.283 million. 

Support levels - 0.5888 (200H MA), 0.5827 (Tenkan sen), 0.5772 (23.6% Fib)

Resistance levels - 0.5978 (5-DMA), 0.6005 (21-EMA), 0.6112 (50% Fib)

Guidance: Good to stay short on break below 200H MA (0.5888), SL: 0.6000, TP: 0.5830/ 0.5775/ 0.57