FxWirePro: NZD/USD pauses downside at 55-EMA support, focus on US PMIs for impetus

NZD/USD chart - Trading View 

Spot Analysis:

NZD/USD was trading 0.06% higher on the day at 0.7159 at around 05:35 GMT.

Previous Week's High/Low: 0.7286/ 0.7150

Technical Analysis:

- Price action has failed to hold break above daily cloud

- Stochs are showing a rollover from overbought levels

- MACD is on verge of bearish crossover on signal line

- 5-DMA has turned, price action has slipped below 200H MA

- GMMA indicator show bearish shift on the hourly charts

Data Watch:

U.S. ISM PMIs (Monday 14:00 GMT)

New Zealand Unemployment Rate (Tuesday 22:45 GMT)

Support levels - 0.7157 (21-EMA), 0.7139 (55-EMA), 0.7082 (110-EMA)

Resistance levels - 0.7204 (5-DMA), 0.7286 (Apr 29 high), 0.73 (psychological mark)

Summary: The US manufacturing sector is expected to continue its uptick. US ISM PMI is forecast to rise to 65 in April from its 38-year high of 64.7 in March. Any disappointment in data will weigh on the USD supporting the pair higher. Technical bias is turning bearish. Watch out for breach below cloud and 55-EMA support for weakness. Scope for test of 110-EMA at 0.7082