FxWirePro: NZD/USD pauses downside with back-to-back doji formations, uptick however, lacks bullish conviction

NZD/USD chart - Trading View 

NZD/USD was trading rangebound for the second consecutive session, outlook still remains bearish.

The major has formed back-to-back Doji formations on the daily candles, suggesting support at lows.

However, uptick in the pair lacks bullish conviction and bias will remain bearish as long as pair holds below 200-DMA.

The underlying bullish sentiment benefitted the kiwi. Also, the RBNZ is expected to hike by Q1 2022, ahead of all other G10 CBs (other than the Norges Bank). 

That said, border closures continue to be a concern for growth. Another cause for concern is the country’s vaccine rollout lags all G10 economies.

On the other side, upbeat US ADP data and hawkish comments from Fed's Kaplan buoy the US dollar, keeping upside in the pair limited.

Cautious trade likely to prevail ahead of US NFP data. Continuation of downside will see test of trendline support at 0.6915.

On the flipside, 5-DMA is immediate resistance at 0.7012. Bearish invalidation only above 200-DMA.