FxWirePro: NZD/USD edges higher but outlook still bearish

• NZD/USD edged higher on Monday   as potential end to U.S. shutdown buoyed risk appetite.

• The U.S. Senate took procedural steps Sunday toward ending the government shutdown, with both parties edging closer to a deal. Trump noted progress, saying an end was “very close.

• A resolution to the shutdown would refocus markets on U.S. data, particularly the long-delayed non-farm payrolls report.

•Meanwhile,Kevin Hassett, a White House economic adviser, warned that prolonged shutdown effects could push U.S. Q4 growth into negative territory.

• Traders see roughly a 60% probability of a Fed rate cut in December, but incoming data could quickly alter those odds.

 
•  Immediate resistance is located at 0.5695(38.2%fib), any close above will push the pair towards 0.5721(SMA 20).

•  Support is seen at 0.5616(23.6%fib) and break below could take the pair towards 0.5600 (Psychological level).

 Recommendation: Good to sell around 0.5660, with stop loss of 0.5750 and target price of 0.5580