NZD/USD: fundamentals favour downside, technicals neutral below 0.6920
- NZD/USD headed for a break of key supports on positive US politics?
- NZD/USD upside target is 0.6942 through 0.6920 resistance.
NZD/USD is inching higher after being supported down at the 0.6840 level for a double bottom on the hourly sticks looking to crack the 100 SMA on the same time frame. Currently, NZD/USD is trading at 0.6861, up 0.15% on the day, having posted a daily high at 0.6864 and low at 0.6850.\
Forex today: Sterling was yet again the big mover over 'no deal' Brexit headline
NZD/USD is unlikely to run away with the bid given the favouritism for US assets and a strong dollar as the US Senate improved a major tax overhaul over the weekend while the FOMC is also expected to hike interest rates next week.
Key events coming up - ANZ
"The RBNZ’s Governor speech today is likely to reinforce an on hold view too. However, reasonable Australian and Chinese PMIs should ensure support remains intact for now," noted analysts at ANZ.
- Support 0.6780
- Resistance 0.6920
NZD/USD's 0.6840 ahead of 0.6815-20 are support levels that are guarding a break of the 0.68 handle towards the 17-month low level of 0.6780. However, the strong recovery last week as a 50% recovery left the pair neutral, (daily RSI and The Momentum indicators confirming a neutral outlook still), just below the 200-hour SMA at 0.6878. The key target to the upside stays with the 28th Nov double-top highs of 0.6942.