FxWirePro: NZD/USD consolidates previous session's slump, recovery capped at 5-DMA
NZD/USD chart - Trading View
NZD/USD was trading largely rangebound at 0.6911 at around 06:40 GMT, outlook bearish.
The pair is consolidating previous session's slump and recovery attempts remain capped below 5-DMA.
FOMC verdict due later today will determine USD price dynamics and hence price action in the pair.
The Federal Reserve is likely to maintain its cautious tone amid rising covid cases. Focus will be on how Fed Chair Jerome Powell will defend the easy-money policies.
A 'Death Cross' (bearish 50-DMA crossover on 200-DMA) confirmed on the daily charts keeps scope for downside.
Momentum is bearish, RSI is below the 50 mark and biased lower. GMMA indicator shows major trend is strongly bearish, while minor trend is shifting bearish.
Strong supports for the pair align at 0.6953 (55-week EMA) and 0.6915 (Trendline). Break below trendline support will plummet prices further.