NZD/USD: profit taking in a minor correction, but Momentum still bullish for 0.7240

Ross J Burland FXStreet

Currently, NZD/USD is trading at 0.7103, down -0.19% on the day, having posted a daily high at 0.7119 and low at 0.7088.

NZD/USD is losing ground as the dollar hardens up vrs the sell off in 2017 so far. The Trumpflation trade has started to unwind and was exacerbated when Trump failed to impress investors yesterday by not giving any concrete plan in respect to fiscal policy. However, analysts at Westpac suggest that upward momentum persists and the next area for pause being 0.7240 (14 Dec high). "Trump's press conference catalysed a paring of long-USD positions."

NZD/USD 1-3 month:

The analysts look for NZD/USD to eventually move lower to 0.6800. "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed's assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar's trend. (21 Dec)."

NZD/USD levels

With spot trading at 0.7103, we can see next resistance ahead at 0.7104 (Hourly 20 EMA), 0.7108 (Daily Classic R1), 0.7117 (Weekly High), 0.7117 (Daily Open) and 0.7119 (Daily High). Support below can be found at 0.7088 (Daily Low), 0.7083 (Daily 200 SMA), 0.7046 (Yesterday's Low), 0.7044 (Weekly Classic R1) and 0.7034 (Daily Classic PP).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.6968

29% Bullish
57% Bearish
14% Sideways

Bias Bearish

1 Month

Avg Forecast 0.6927

27% Bullish
55% Bearish
18% Sideways

Bias Bearish

1 Quarter

Avg Forecast 0.6799

7% Bullish
60% Bearish
33% Sideways

Bias Bearish

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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