NZD/USD: bulls in control still, testing 4hr 200 sma, DXY consolidates
|Currently, NZD/USD is trading at 0.7234, up 0.04% on the day, having posted a daily high at 0.7238 and low at 0.7226.
NZD/USD has remained bid on the 0.72 handle in a risk-on environment and continues within the extension of the rally from the 0.70 handle, albeit failing at the 200 sma on the 4hr sticks coming in at 0.7247. The dollar index is consolidating after a number of sessions in a mixed/bearish environment.
Data overnight was mixed for the US with US housing starts that fell 9.0% in September vrs the +2.9% expected. However, building permits were much higher 6.3% vrs 1.1% expected offering a prelude for a better housing sector in Q4. The Fed's Beige Book of regional economic conditions repeated the “modest to moderate” growth mantra.
NZD/USD outlook
Meanwhile, analysts at Westpac offered an outlook for NZD/USD." Testing the 0.7230-40 area which is technically significant (marked the early Oct breakdown). A break above this would have bullish implications for the days ahead. NZD/USD 1-3 month: Targets 0.6950 or lower as long as the RBNZ cuts to 1.75% in November and the Fed tightens to 0.625% in December, as we expect."
NZD/USD levels
Current price is 0.7235, with resistance ahead at 0.7238 (Daily High), 0.7251 (Yesterday's High), 0.7251 (Weekly Classic R2), 0.7271 (Daily Classic R2) and 0.7317 (Weekly Classic R3).Next support to the downside can be found at 0.7232 (Daily Open), 0.7230 (Daily Classic R1), 0.7226 (Daily Low), 0.7217 (Hourly 20 EMA) and 0.7190 (Yesterday's Low).
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