FxWirePro: NZD/USD extends recovery from new 7-month lows at 0.6481, break above 1H 200-SMA to see further upside
NZD/USD chart - Trading View
NZD/USD is extending recovery from new 7-month lows at 0.6481, trades 0.18% higher on the day at 0.6530 at 07:15 GMT.
Antipodeans better bid on the day on improved risk sentiment and weaker USD amid poor U.S. data.
U.S. Manufacturing PMI fell 2 points to 50.6 which was the lowest level since 2009 while US Services PMI fell 2.1pts to 50.9, a three-year low.
Further, U.S. new home sales lost -6.9% in April while US jobless claims offered some solace for the greenback, coming at 211k last week.
NZD/USD trades with a major bearish bias. Scope for further downside after 'Death Cross' formation on daily charts.
Price action has tested 88.6% Fib, break below will see dip till 0.6475 (major trendline support) ahead of 0.6424 (Oct 8th low).
Bullish divergence on RSI and Stochs keep intraday bias slightly bullish.
Price action hovers shy of 1H 200-SMA at 0.6534. Break above will see gains till 21-EMA at 0.6576.
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