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FxWirePro: NZD/USD pauses upside at 61.8% Fib, break below 200H MA to see more downside

NZD/USD chart - Trading View NZD/USD was trading 0.38% lower on the day at 0.7170 at around 10:30 GMT. The pair has paused upside at 61.8% Fib retracement at 0.7212, overbought conditions may cause some pullbacks. US gro…

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FxWirePro: NZD/USD pauses upside at 61.8% Fib, break below 200H MA to see more downside
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NZD/USD chart - Trading View 

NZD/USD was trading 0.38% lower on the day at 0.7170 at around 10:30 GMT.

The pair has paused upside at 61.8% Fib retracement at 0.7212, overbought conditions may cause some pullbacks.

US gross domestic product grew at only a 2% annualized rate in the quarter ended in September, missing forecasts at a 2.7% rate.

Further, consumers' inflation expectations over the next 12 months jumped to a 13-year high.

The dollar index (DXY) was headed for a third straight weekly decline, consolidates previous session's 0.53% slump .

Market participants now await the Fed policy meeting next week. Investors focus on how the Federal Reserve responds to higher inflation and concerns over tepid economic growth.

NZD/USD is consolidating break above weekly cloud, momentum on the weekly charts remains bullish.

Support levels - 0.7170 (nearly converge 200H MA and 5-DMA), 0.7134 (50% Fib), 0.7097 (200-DMA)

Resistance levels - 0.7196 (200-month MA), 0.72, 0.7212 (61.8% Fib)

Summary: NZD/USD pair finds strong support at 200H MA at 0.7168, decisive break below will drag the pair lower. Major trend is bullish. Break below 200-DMA will change near-term dynamics. 
 

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