FxWirePro: NZD/USD sidelined below 50-DMA, major trend bearish, break above 50-DMA to see minor upside

Refer NZD/USD chart on Trading View

• NZD/USD is extending sideways grind above 21-EMA support, momentum still with the bulls.
   
• However, major trend in the pair remains bearish. Breakout at 50-DMA could see minor upside.
   
• Markets will be watching out for New Zeakand August business confidence data due later this week.
   
• The Reserve Bank of New Zealand (RBNZ) has cited weak investment intentions as a reason for a more subdued outlook for the New Zealand economy.
   
• RBNZ Gov Orr, at the Jackson Hole, reiterated that the central bank intends to hold policy rates low for an extended period of time which is likely to keep a lid on the Kiwi dollar. 
   
• NZD/USD is holding break above 21-EMA, break below will see resumption of weakness.
   
• We see strong resistance at 50-DMA at 0.6746, break above will see some upside. Scope then for test of 55-EMA at 0.6767 ahead of 38.2% Fib at 0.6869. 
   
• On the flipside, failure to hold break above 21-EMA at 0.6685 can see weakness till 0.6544 (Aug 15 low).

Support levels - 0.6687 (converged 21-EMA & 5-DMA), 0.6619 (Aug 24 low),0.66

Resistance levels - 0.6745 (50-DMA) 0.6755 (23.6% Fib), 0.68, 0.6885 (38.2% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -49.412 (Neutral), while Hourly USD Spot Index was at -111.835 (Bearish) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.