FxWirePro: NZD/USD hits fresh 14-month low below 200-week MA, outlook bearish
Chart - Courtesy Trading View
NZD/USD was trading 0.30% lower on the day at 0.6678 at around 08:50 GMT.
The pair is extending downside for the 4th consecutive session and has tested fresh 14-month lows at 0.6660 on Monday's trade.
Escalating tensions between Russia and Ukraine have been causing markets to remain risk averse, denting the antipodeans.
Focus on New Zealand Q4 Consumer Price Inflation data which will be released on Thursday later this week.
The Fed will decide policy on Wednesday and is widely expected to tighten monetary policy at a faster pace than expected to curb the continuously high inflation.
A hotter than expected NZ inflation outturn could result in a strengthening of the market’s conviction that the RBNZ is set to continue the rate hiking cycle.
Technical indicators are biased lower. Momentum is strongly bearish and volatility is high. MACD and ADX support downside in the pair.
Price action has slipped below 38.2% Fib, and has tested major trendline support at 0.6660. Scope for test of 50% Fib at 0.6466. Bearish invalidation likely on retrace above 200-week MA.