FxWirePro: NZD/USD extends weakness below 21-EMA, outlook bearish

Chart - Courtesy Trading View 

Spot Analysis:

NZD/USD was trading 0.29% lower on the day at 0.6772 at around 09:05 GMT.

Previous Week's High/ Low: 0.6890/ 0.6736

Previous Session's High/ Low: 0.6818/ 0.6787

Fundamental Overview:

Rising covid cases and geopolitical risks emanating from Russia keep the antipodeans depressed.

Ratings agency Fitch says China growth should improve during the second half of 2022, news has little impact.

US Dollar tracks stronger UST yields. US Treasury yields refresh multi-day top as bond/equities’ trading resume following US market holiday on Monday.

US NY Empire State Manufacturing Index for January and NAHB Housing Market Index will be in focus. 

Technical Analysis:

- NZD/USD price action rejected at 55-EMA and daily cloud

- Momentum is bearish, stochs and RSI are biased lower

- GMMA indicator shows major and minor trend are bearish

- MACD is on verge of bearish crossover on signal line

Major Support and Resistance Levels:

Support - 0.6739 (200-week MA), Resistance - 0.6801 (21-EMA)

Summary: NZD/USD was trading with a bearish bias. Scope for test of 200-week MA at 0.6739.