FxWirePro: NZD/USD resumes weakness after rejection at daily cloud and 110-EMA

NZD/USD chart - Trading View 

Spot Analysis:

NZD/USD was trading 0.26% lower on the day at 0.6972 at around 05:30 GMT

Previous Week's High/ Low: 0.7088/ 0.6952

Previous Session's High/ Low: 0.7026/ 0.6980

Fundamental Overview:

Ongoing covid concerns weigh on market sentiment, denting the antipodeans.

Speculations of earlier than expected stimulus withdrawal at the U.S. Federal Reserve strengthen the U.S. dollar.

Persistent concerns over the spread of the Delta variant of the coronavirus triggered falls in metals and oil prices, a further negative for the commodity currencies.

Investors are concerned the Federal Reserve may begin to taper support earlier than expected on 

An upbeat U.S. jobs report and inflationary pressure which stoke earlier Fed taper expectations push UST yields to three-week highs.

Technical Analysis:

- NZD/USD upside rejected at daily cloud and 110-EMA resistance

- Death Cross on the daily charts keeps bias bearish

- Stochs and RSI are now biased lower, 5-DMA has turned

- GMMA indicator shows major trend is bearish, while minor trend is turning bearish

Major Support and Resistance Levels:

Support - 0.6956 (55-week EMA), Resistance - 0.6997 (21-EMA)

Summary: NZD/USD trades with a bearish technical bias. U.S. dollar strength and risk-off market sentiment to further weigh on the pair. More downside on cards, scope for test of major trendline support at 0.69.