NZD/USD:" To fly north or south?" the bird asks ...

• The Kiwi has been taking its cues from the ebbs and flows in risk, CNH & EM-FX and the greenback's performance. 
• NZD/USD is currently trading at 0.6553, slightly off from the 0.6569 highs and up from the 0.6534 lows. 
• Technically, NZD/USD is at a crossroads with the makings of a bullish reversal in close quarters, or, an extension of the prominent bear trend vs the greenback.  

NZD/USD has been consolidating around the 21-hr SMA, with bulls defending 0.6535 and 0.6542 as the Asian and NY lows in an otherwise broadly bearish tend on multiple time frames. There have not been significant domestic takeaways of late and instead, the focus is on the Chinese and US economy whereby stock market are starting to correlate, at least in terms of directions. The Kiwi picks up a bid in times of risk-on and visa versa.  

Kiwi took a breather overnight

"Kiwi took a breather overnight, trading in familiar ranges and is sitting a touch higher, even with markets in risk-off mode and commodity prices lower, with this cross finding some stability after recent USD strength. More USD strength is possible, and we see this cross lower in time, but price action is likely to be choppy. With little domestic data to provide direction this week, global developments are likely to dictate moves," analysts at ANZ Bank New Zealand Limited explained, adding, "But despite the reprieve overnight, further price action may be choppy."

NZD/USD levels

• Support 0.6460
• Resistance 0.6620

The recent business done below the 50% retracement is key in the bear's quest for lower levels. An extension of this downside below 0.6505 opens S3 located down at 0.6459 and the 23.6% Fibo (20th Sep/7th Oct range) located at 0.6489. However, a break of the descending channel's resistance line and 0.66 the figure opens the room to 0.6634 as the 76.4% Fibo target, (20th Sep/7th Oct range).