NZD/USD: lower highs below 0.6950, greenback upper hand longer term

Currently, NZD/USD is trading at 0.6885, up 0.09% on the day, having posted a daily high at 0.6890 and low at 0.6882.

• Forex Today: dominated by US political uncertainties and a change of mood in the dollar

NZD/USD has continued to make lower highs on recovery attempts within the progressively bearish picture. The bird is essentially bounded by 0.6850 and 0.6950.

• Dairy prices continue to show strength - ANZ

There is fresh support from last night’s breakdown in the US dollar explained analysts at Westpac in the near term outlook while on a medium term scale, the greenback has the upper hand. "The Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6700 by year end, " explained analysts at Westpac who added, however, local factors are mostly supportive. "A strong NZ economy, higher dairy prices, and higher inflation; but the RBNZ less convinced." 

• US Dollar slips below 98, touches lowest level since early November

NZD/USD levels

The 0.6820/30 area remains the first key level of support.  A break to the downside through levels on the  0.67 handle has the 0.6675 level as the 29th May 2016 high. 0.6920/30 is the immediate resistance area. A break through the midpoint opens up the 0.7000 level. Then there is the 17th April highs of 0.7035 ahead of 0.7060/70, being a further key resistance area through the 200-d ema (0.7037). The double bottom at 0.7130 as the mid-Feb lows could be a strong area of resistance.