FxWirePro: NZD/USD rangebound at 21-EMA resistance, Kiwi under pressure as RBNZ show readiness to take further measures

NZD/USD chart - Trading View 

NZD/USD trades comatose around 21-EMA resistance, technical bias still supports upside.

The major was trading 0.26% lower at 0.6024 at around 04:00 GMT, with session highs at 0.6063 and lows at 0.5992.

Market’s risk-tone remains under pressure. PBoC's rate cut and the liquidity injection have failed to put a bid under the risk assets.

US dollar is drawing safe-haven bids, while the Kiwi under pressure after RBNZ indicated readiness to take further measures to combat the COVID-19 pandemic.

The Reserve Bank Of New Zealand (RBNZ) said the central bank has other tools on hand to keep cost of borrowing low for as long as needed.

NZD/USD has paused 6-day winning streak. But, technical indicators still support upside. Major trend is bearish, but break above 21-EMA could see more upside momentum.

'Death Cross' (bearish 50-DMA crossover on 200-DMA) to limit upside. Rejection at 21-EMA will see downside resumption.

No major data/events scheduled for the day. Focus remains on the virus/stimulus news for direction.

Major Support Levels - 0.5960 (38.2% Fib), 0.5938 (5-DMA)

Major Resistance Levels - 0.6025 (21-EMA), 0.6112 (50% Fib)