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NZD/USD: target, 0.6950, has the bird got wings for a test of the trend topside resistance?

  • NZD/USD: robust despite risk-off events playing out.
  • NZD/USD to trade higher on seasonal trends?

NZD/USD has penetrated below the 50-hour SMA at 0.6906 but is finding the 100-hour SMA at 0.68 a barrier now that turbulence has calmed down after a frantic NY session. NZD/USD Currently, NZD/USD is trading at 0.6902, down -0.12% on the day, having posted a daily high at 0.6912 and low at 0.6894.

Forex today: "what a day!"

  • S.Korean Military: N.Korea fired 1 ballistic missile from South Pyongan Province.
  • Britain agrees to liabilities worth €100bn but will aim to pay less than half - Financial Times.
  • UK government official: Don't recognise Telegraph' account of Brexit negotiations.
  • Fed's Powell: Case for raising interest rates at next meeting is coming together.
  • Fed's Powell: It is time to be normalizing interest rates.

There was plenty going on in the FX space in the US session while the dollar was thrown back and forth depending on each headline's implications for the markets, on a headline driven session. The major news was with Brexit progress, N.Korea firing a missile towards Japan's economic district and the US tax plan's conflicting headlines turning into progress there too by the end of the session. The Kiwi closed at 0.69 the figure having been as high as 0.6945 and off lows of 0.6896.

Financial Stability Report for November 2017 breakdown

RBNZ's Spencer: Expect tighter credit standards to continue

A test of topside possible today?

"Positioning continued to push the NZD higher overnight with a test of topside resistance possible today. The passing of US tax reform and other political developments (i.e. keeping the US government open) remain wild cards, otherwise seasonal trends suggest the NZD/USD could be headed back above 0.70 in the near-term," analysts at ANZ explained.

NZD/USD levels

  • Support 0.6850.
  • Resistance 0.6950. 

Daily RSI is heading more positive in the continued recovery attempts from recent 0.6780 lows scored earlier int he month, although while the monthly technicals are bearish pointing to a period of consolidation still. Key support below 0.6850 comes at 0.6780 while resistance is located at 0.6920 ahead of 0.6950.  0.6980 as the 9th Nov top opens 11th Oct support level of 0.7054 as a key target.

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