Chart - Courtesy Trading View
NZD/USD was trading 1.32% lower on the day at 0.6248 at around 09:30 GMT
The pair refreshes intraday low following New Zealand’s downbeat trade data released earlier during Wednesday’s Asian session.
New Zealand's June Consumer confidence plummeted to the lowest level on record, falling from 92.1 to 78.7.
Further, New Zealand Trade Balance dropped to $263M MoM versus $440M prior (revised from $584M).
Details of the report showed Exports and Imports came in as $6.95B and $6.69B respectively compared to $6.16B and $5.72B revised down previous figures in that order.
Also, the market’s anxiety ahead of the key Testimony from Fed Chair Jerome Powell keeps downside pressure on the pair.
Technical Analysis: Bias Bearish
- GMMA indicator shows major and minor trend are bearish
- Price action is below major moving averages which are trending lower
- MACD and ADX support downside in the pair
- Momentum is bearish and volatility is high and rising
Support levels - 0.6189 (Lower BB), Resistance levels - 0.6371 (21-EMA)
Summary: NZD/USD trades with a major bearish bias. Recovery attempts capped at 21-EMA. Scope for downside resumption.
