NZD/USD: sideways outside of the bearish wedge with geopolitical risks ahead, a warning to bulls

• Key support is located at 0.6880 and resistance at 0.7060.
• 'A busy week globally (including key FOMC and ECB meetings).

NZD/USD has been moving sideways, resisted by the descending trendline, squeezed out by the rising bearish wedge and starting out the week on the backfoot. Currently, NZD/USD is trading at 0.7025, offered from the open to a low of 0.7020 and making a recovery high of 0.7029. 

European traders on Friday were weighing up the risks that lay ahead for this week where risk appetite seized with the price dropping from 0.7031 down to 0.7002 the low. However, NY traders picked up the batton with a positive day on Wall Street and the Aussie lead the way, (AUD/JPY lifts AUD). Subsequently, NZD/USD made a high of 0.7042.

"In what is shaping as a busy week globally (including key FOMC and ECB meetings), the fallout from the latest G7 meeting could set the tone early. With the only real conclusion being that trade uncertainties are going to persist, the NZD could find itself on the back foot. That said it is likely to take a lot to break it out of recent ranges," 

analysts at ANZ explained. 

NZD/USD levels

Key support is located at 0.6880 while resistance is located at 0.7060. NZD/USD remains above the 200-month moving average support at 0.6994 and weekly technicals remain bullish while the price targets the descending 10-W SMA at  0.7055.  0.7440 comes as key upside target as the January tops on the wide, however, there is a bearish wedge formation that the price has moved out of, warning bulls of a correction while below 0.7080. On the downside, a break of 0.7000 and 0.6980 opens risk to 0.6850/80. 0.6780 comes as next downside target meeting the lows of mid-Nov 2017.