NZD/USD: testing the downside below the key 0.69 handle
|Currently, NZD/USD is trading at 0.6896, down -0.06% on the day, having posted a daily high at 0.6903 and low at 0.6893.
Forex today: scandals and political tensions roil markets once again
NZD/USD is currently consolidated after losing the 0.69 handle overnight when the dollar bounced back amidst the idea that Trump would get off lightly post the Comey video doing the rounds. However, that is not to say the bears are in the clear and indeed the pair remains within the bounds of the recent ranges between 0.6850 and 0.6950. The bird is supported by an improvement in global sentiment for milk prices and a steady economy growing at a moderate pace. US yields are still below water while unable to regain traction above the 2.3% psychological level.
NZD/USD 1-3 month:
Analysts at Westpac explained that the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6700 by year end. "However, local factors are mostly supportive: a strong NZ economy, higher dairy prices, and higher inflation; but the RBNZ less convinced."
NZD/USD levels
0.6920/50 remains as the key resistance area where the 200 4hr EMA is located at 0.6936 currently. However, a break through the midpoint opens up the 0.7000 level. The 17th April highs of 0.7035 ahead of 0.7060/70, are the next major resistance area through the 200-d ema (0.7037). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance. To the downside, 0.6880, where the 4hr ma's gather and 0.6840 are the near term supports.
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