FxWirePro: NZD/USD poised to extend bearish gap down open, eyes fresh yearly lows below 0.6216

Chart - Courtesy Trading View 

NZD/USD has slipped below 0.63 handle and was trading 0.88% lower on the day at 0.6298 at around 10:05 GMT.

The pair is extending downside for the 7th straight session and has hit new 4-week low, bias remains bearish.

The major has opened the week with a bearish gap down and is poised to slip further as technical indicators are biased lower.

Price action is below cloud and Chikou span is biased lower. Stochs and RSI are sharply lower and support downside.

MACD confirms bearish crossover on signal line, ADX supports downside in the pair. 

Risk-off mood joins firmer US Treasury yields to favor US dollar, weighing on the pair. Focus will be on Wednesday’s Federal Open Market Committee (FOMC) for impetus. 

Data released on Friday showed US headline CPI rose to 8.6% YoY versus 8.3% expected while the Core CPI jumped 6.0% YoY compared to the expected drop to 5.9% from 6.2% a month earlier.

China’s Defense Minister Wei Fenghe's comments which noted that 'China's relationship with the US is at a crossroads' weighed on sentiment.

Support levels - 0.6290 (Lower BB), 0.6216 (May low)

Resistance levels - 0.6392 (5-DMA), 0.6443 (21-EMA)

Summary: NZD/USD trades with a bearish bias. Scope for refresh of yearly lows below 0.6216.