NZD/USD bears taking back control, eyes on 100-D SMA

• NZD/USD has left a hanging man warning sign to the bulls on the daily charts. 
• NZD/USD is currently trading at 0.6821 from a high of 0.6831 to a low of 0.6816.

The bird was weighed on by weaker stocks and risk sentiment following the Chinese and European data disappointments. 

"With global data continuing to disappoint, liquidity tightening and event risk elevated, we see a challenging environment continuing for risk currencies like the NZD. Add to that a domestic picture that we think is set to disappoint, and the medium-term outlook for kiwi isn’t looking too bright – but don’t expect it to be a straightforward path lower," analysts at ANZ Bank explained. 

The week ahead is jam-packed of event risks and Fed speakers so we can expect volatility this week. We have the Brexit vote, several Fed speakers, US retail sales, industrial production, new home sales, housing starts, factory orders and regional PMI data for January. 

"Continued downward pressure over the medium term, although it may be a bumpy ride," explained the analysts at ANZ Bank.

NZD/USD levels

Support 0.6650.
Resistance 0.6860.

Bulls still struggle on the 0.68 handle still but should there be a surge higher, then the 50% Fibo is located at 0.6929. This is guarding the December high of 0.6969. On the flip side, a break of the 100-D SMA at 0.6684 with daily closes will sure up the negative bias again, especially on a break back below the 23.6% Fibo.