FxWirePro: NZD/USD extends bounce off 21-EMA, outlook bullish

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.45% higher on the day at 0.6290 at around 09:10 GMT.

Previous Week's High/ Low: 0.6304/ 0.6141

Previous Session's High/ Low: 0.6277/ 0.6191

Fundamental Overview:

Fed’s hints of a slowdown in the rate hike cycle, along with chatters surrounding the US economic weakness, keep NZD/USD bid.

New Zealand ANZ Activity Outlook for July improved to -8.7% versus -9.1% prior but the Business Confidence dropped below -55 expected to -56.7, versus -62.6 prior.

Cautious mood prevails ahead of the virtual meeting between US President Joe Biden and China President Xi Jinping.

Focus now on the flash readings of the US Q2 Gross Domestic Product (GDP) Annualized, expected 0.4% versus -1.6% prior.

Technical Analysis:

- NZD/USD grinds higher along 21-EMA support

- Momentum is bullish, Stochs and RSI are biased higher

- Price action has retraced dip below 200H MA

- GMMA indicator has turned bullish on the intraday charts

Major Support and Resistance Levels:

Support - 0.6256 (5-DMA), 0.6230 (converged 21-EMA and 200H MA)

Resistance - 0.6297 (Upper BB), 0.6315 (55-EMA)

Summary: NZD/USD trades with a bullish bias. The pair eyes immediate resistance at 55-EMA, break above will see further gains.