FxWirePro: NZD/USD extends range trade for the 3rd consecutive session, FOMC policy meet in focus for direction
NZD/USD chart - Trading View
NZD/USD was trading largely unchanged at 0.6973 at around 09:30 GMT, with session high at 0.6985 and low at 0.6947.
The major is extending sideways grind for the 3rd consecutive session, remains capped below 21-EMA.
Worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus weighed on market sentiment.
Riskier assets like the kiwi were dampened by the risk-off impulse in the markets. Pre-FOMC lull kept traders on the sidelines.
The Fed is likely to shed some light on tapering, possibly in the final quarter of this year. Any hawkish hints will drag the pair lower.
Major Support and Resistance Levels:
Support levels - 0.6961 (5-DMA), 0.6954 (55-week EMA), 0.6837 (110-week EMA)
Resistance levels - 0.6993 (21-EMA), 0.70, 0.7080 (200-DMA)
Summary: Technical bias is neutral. While Wednesday’s FOMC decision will be the key event for the week, focus also on US New Homes Sales data later today for some fresh trading impetus.