NZD/USD: battles the bear's opening bearish gap for the 0.73 handle target

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7294, up 0.05% on the day, having posted a daily high at 0.7301 and low at 0.7278.

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NZD/USD has recovered from the opening gap from 0.7278 to current spot. The dollar ended last week in a slightly better position that immediately after the data misses in industrial production and retail sales, and the NZD is likely to remain at the whim of USD movements this week until more clarity on the make-up of parliament is gained this weekend, as noted by analysts at ANZ.

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"With US inflation indicators suggesting a base has been found, a December Fed hike is now 50/50. Further supportive comments from the FOMC will, therefore, be needed this week. US tax reforms also remain a must watch, but the hurdle for a quick positive surprise is high...The USD could find some more support this week from FOMC guidance and the possible progress on tax reforms," argued the analysts at ANZ.

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NZD/USD levels

To the upside, and a break of 0.7310 opens up 0.7320, then 0.7337 recent highs and lastly 0.7370 (9th Aug high) that are the next targets in the near term. To the downside,0.7280 and 0.7220 guards 0.7195 as the recent low. 0.7127 is the June 6th low and 0.7100 is a key psychological level.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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