FxWirePro: NZD/USD refreshes 2-year lows below 0.59 handle, outlook bearish

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 1.14% lower on the day at 0.5890 at around 13:40 GMT

Previous Week's High/ Low: 0.6161/ 0.5939

Previous Session's High/ Low: 0.6001/ 0.5929

Fundamental Overview:

DXY strength ahead of FOMC meeting keeps downside pressure on the pair.

The People’s Bank of China (PBOC) held one-year and five-year Loan Prime Rate (LPR) unchanged at 3.65% and 4.30% respectively.

The PBOC's decision poured cold water on the face of expectations of a rate cut and weigh on antipodean prices.

Technical Analysis:

- NZD/USD trades below major moving averages which are trending lower

- Price action is below cloud and Chikou span is biased lower

- Momentum is strongly bearish, Stochs and RSI are sharply lower

- GMMA indicator shows major and minor trend are strongly bearish

Major Support and Resistance Levels:

Support - 0.5850 (April 2020 low), Resistance - 

Summary: NZD/USD trades with a strong bearish bias, poised to test fresh multi-month lows.