NZD/USD chart - Trading View
NZD/USD dived lower on Tuesday's trade, slumps over 1.10% to levels unseen since Dec 2020.
The pair erased previous session's modest uptick and plummeted amid renewed selling pressure.
Investor sentiment turned sour after the US, Canada, UK and EU imposed sanctions on Chinese officials over human rights violations in Xinjiang.
This co-ordinated human-right sanctioning of Chinese officials was seen as a key factor driving weakness in kiwi.
Price action has shown a breach below channel base and daily cloud and has broken below 100-DMA.
The pair now eyes 110-EMA support at 0.7064, decisive break below will see an extension of the recent pullback.
Momentum studies are bearish, volatility is rising, scope for dip till 200-DMA at 0.6855. Retrace above cloud will negate any bearish bias.
