FxWirePro: NZD/USD refreshes 2-year lows below 0.60 handle, outlook bearish

Chart - Courtesy Trading View 

NZD/USD was trading 0.13% lower on the day at 0.5956 at around 09:10 GMT.

The major has refreshed 2-year lows below 0.59 handle, outlook is bearish.

Momentum is strongly bearish, stochs and RSI are biased lower, volatility is high and rising.

MACD and ADX support downside in the pair, Chikou span is biased lower. Major moving averages are biased lower. 

GMMA indicator shows major and minor trend are bearish. Price action is well below 200H MA.

Stronger US CPI report released on Tuesday lifted bets for a more aggressive policy tightening by the Fed, which continues to underpin the greenback.

Caution prevails ahead of the upcoming FOMC meeting on September 20-21, for which the markets are pricing in the possibility of a full 100 bps rate hike.

Support levels - 0.5945 (Lower BB), 0.5920 (May 2020 low)

Resistance levels - 0.6010 (5-DMA), 0.6094 (21-EMA)

Summary: NZD/USD poised for further weakness. Scope for fresh multi-month lows below 0.5920.