NZD/USD: profit taking in a minor correction, but Momentum still bullish for 0.7240

Currently, NZD/USD is trading at 0.7103, down -0.19% on the day, having posted a daily high at 0.7119 and low at 0.7088.

NZD/USD is losing ground as the dollar hardens up vrs the sell off in 2017 so far. The Trumpflation trade has started to unwind and was exacerbated when Trump failed to impress investors yesterday by not giving any concrete plan in respect to fiscal policy. However, analysts at Westpac suggest that upward momentum persists and the next area for pause being 0.7240 (14 Dec high). "Trump's press conference catalysed a paring of long-USD positions."

NZD/USD 1-3 month:

The analysts look for NZD/USD to eventually move lower to 0.6800. "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed's assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar's trend. (21 Dec)."

NZD/USD levels

With spot trading at 0.7103, we can see next resistance ahead at 0.7104 (Hourly 20 EMA), 0.7108 (Daily Classic R1), 0.7117 (Weekly High), 0.7117 (Daily Open) and 0.7119 (Daily High). Support below can be found at 0.7088 (Daily Low), 0.7083 (Daily 200 SMA), 0.7046 (Yesterday's Low), 0.7044 (Weekly Classic R1) and 0.7034 (Daily Classic PP).