FxWirePro: NZD/USD extends range trade for the 2nd straight session, U.S. PMIs for July eyed for impetus

NZD/USD chart - Trading View 

NZD/USD was trading largely rangebound on the day at 0.6976 at around 05:20 GMT.

The major was extending range trade for the 2nd straight session, intraday bias remains neutral.

New Zealand’s comparatively better covid conditions along with increasing odds of RBNZ rate hike during late 2021 keep downside in NZD/USD limited.

On the other side, U.S. policymaker’s optimism over further stimulus, along with the relief in altering the US debt limits, favor market sentiment.

Traders await US PMIs for July for fresh impulse. Poor data could exacerbate risk-off mood and weigh on the US dollar.

Analysts expect the U.S. Manufacturing PMI to tick down from 62.1 to 62 and the Services PMI from 64.6 to 64.8. 

Major bias for the pair is bearish. Price action is below cloud and major moving averages. A potential 'Death Cross' on the daily charts keeps scope for further downside.

Strong support is seen at 0.6915 (Trendline). Breach below will plummet prices. Bearish invalidation only above 200-DMA.