FxWirePro: NZD/USD trades below 21-EMA, outlook bearish

Chart - Courtesy Trading View 

NZD/USD was trading 0.41% lower on the day at 0.6461 at around 05:40 GMT.

The pair is extending weakness for the 4th straight session, scope for further downside.

China’s diplomats express fear of a slowdown in global demand, keeping the antipodeans depressed.

China’s Vice Commerce Minister Wang Shouwen joined China’s Vice Finance Minister Zou Jiayi to renew fears of global economic slowdown, as well as fears of receding demand.

On the data front, US trade deficit for April marked the historical fall of 19.1% to USD87.1bn the previous day.

Friday’s US Consumer Price Index (CPI) for May will be crucial to determine USD price dynamics. 

Technical Analysis:

- NZD/USD is extending downside for the 4th consecutive session

- Price action remains capped below 5-DMA

- Momentum is bearish, RSI has slipped below 50, Stochs are on verge of rollover from overbought levels

- GMMA indicator shows major and minor trend are bearish

Support levels:

S1: 0.6435 (20-DMA)

S2: 0.6409 (23.6% Fib)

Resistance levels:

R1: 0.6497 (5-DMA)

R2:  0.6556 (55-EMA)

Summary: NZD/USD was trading with a bearish bias. Dip below 0.64 on cards.