Chart - Courtesy Trading View
NZD/USD dives over 0.85% on the day to hit fresh multi-month lows, outlook strongly bearish.
The pair is extending bearish streak for the seventh straight week, hits levels unseen since June 2020.
Inflation fears and hopes of aggressive Fed rate hikes keep the US Treasury yields buoyed, supporting the US dollar.
Further, the US dollar safe-haven appeal, amid fears of worsening covid woes in China and the global leaders’ sanctions on Russia, keep the pair under pressure.
Technical indicators are strongly bearish. Momentum with the bearish, volatility is high and GMMA indicator shows major and minor trend are strongly bearish.
Major Support Levels:
S1: 0.6293 (Lower BB)
S2: 0.6185 (June 2020 low)
Major Resistance Levels:
R1: 0.6431 (5-DMA)
R2: 0.6471 (200H MA)
Summary: NZD/USD trades with a bearish bias. Little support seen till June 2020 lows at 0.6185. 5-DMA caps upside at 0.6431. Bearish invalidation only above 200-DMA.
