NZD/USD: lacks follow through below H&S neckline, USD moderating?

Currently, NZD/USD is trading at 0.7097, down -0.01% on the day, having posted a daily high at 0.7105 and low at 0.7095.

NZD/USD penetrated the 0.7060 area and H&S neckline, but has not done so with conviction and is consolidating in early Asia at time of writing just below the 20 ma on the 1hr sticks. The driver remains as the greenback while investors pin hopes for a December rate hike although it is a toss up between uncertainty with Trump's recent victory and perceived inflationary pressures as to whether the Fed will want to act. USD’s mature-looking secular bull trend to moderate in late 2017 - Scotiabank

"The NZ economy is strong and dairy prices have risen. Overall we are left with a bearish outlook, targeting 0.70," explained analysts at Westpac.

NZD/USD levels

With spot trading at 0.7098, we can see next resistance ahead at 0.7099 (Monthly Low), 0.7099 (Weekly Low), 0.7099 (Daily Open), 0.7100 (Hourly 20 EMA) and 0.7104 (Daily Classic PP). Support below can be found at 0.7095 (Daily Low), 0.7071 (Yesterday's Low), 0.7065 (Daily Classic S1), 0.7030 (Daily Classic S2) and 0.7020 (Weekly Classic S1).