FxWirePro: NZD/USD retreats from 4-week high, slips below 5-DMA, scope for further downside

NZD/USD chart - Trading View 

NZD/USD was trading 0.92% lower on the day at 0.6049 at around 06:00 GMT.

The pair retreats from 4-week high, breaks below 5-DMA, scope for further downside.

US dollar is seen recovering some lost ground following Tuesday’s sharp sell-off, weighing on the pair.

NZD/USD has failed to extend break above 0.61 handle, bears eye 21-EMA support at 0.6020, break below will see further downside.

Speculation of a global recession and further deterioration of fundamentals on account of the COVID-19 pandemic keeps risk assets on check.

Technical studies are poised for bearish reversal. Stochs are on verge of rollover from overbought levels.

Major trend as evidenced by GMMA indicator is bearish. Minor trend is turning neutral. Break below 200H MA will confirm further weakness. 

Support levels - 0.6020 (21-EMA), 0.60 (200H MA), 0.5936 (20-DMA)

Resistance levels - 0.6145 (55-EMA), 0.6241 (Cloud base), 0.6264 (61.8% Fib)