NZD/USD bears remain in control, target 0.7120 day ahead

Currently, NZD/USD is trading at 0.7177, up 0.02% on the day, having posted a daily high at 0.7179 and low at 0.7174.

The Kiwi has lost its flight and the correction continues of the Dec-Feb rally where the king dollar lost its authority momentarily at the start of 2017. The antipodeans were the main benefactors along with the commodity bloc, but as reported an earlier article, Kit Juckes explained that copper is struggling and weighing on the relative currencies. For the day ahead, 0.7120 is in sight where the 4hr sma is placed 20 pips higher and supporting at 0.7151.

NZD/USD 1-3 month:  

Analysts at Westpac explained that the month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. "Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (1 Feb)."

NZD/USD levels

NZD/USD has been below the 200-day SMA at 0.7166 at the start of this week and there have been few signs of bulls reemerging at this stage. 0.7100 is the key downside target below 0.7120. Resistance comes at 0.7280 back through the 1he 200 sma with the 0.74 handle and 7th Nov highs as a key objective.