NZD/USD: has been testing critical supporting area below 0.6700

NZD/USD is currently trading at 0.6734 with a high of 0.6771 and a low of 0.6703.

NZD/USD is chipping away at the downside and testing the 100 dma at 0.6716 today. The market rebounded on Wall Street paring losses from earlier and oil remains better bid supporting the commodity bloc. However, metals are on their knees with Gold making fresh lows for May and the industrials, such as copper are following suit.

However, copper's double top and daily bear trend is starting to consolidate, but so long as the market continues to price in a June hike form the Fed, the greenback will remain in favour as monetary policy chases up inflationary pressures in the US economy and the Kiwi will be left behind on the Central Bank divergences.

NZD/USD levels

NZD/USD seen at 0.70 by year-end – Danske Bank

NZD/USD remains in the lower end of the recent range for May between new lows of 0.6705 and 0.6847. The double bottom on 0.6700/10 is being tested along with the 100 dma. NZD/USD is moving further below the rising channels up-tend from 2016 lows of 0.6347. 0.6657 is where the 50 week sma is located that has penetrated below the 20 week sma at 0.6695 ahead of the price as next major support and target. The 20 sma on the 4hr chart is located at 0.6755 ahead of 0.6800 that remains the psychological resistance to break in a continuation of the reversal.