NZD/USD dominates 0.7200 handle; short-term 61.8% Fib next at 0.7243

From the US pairs, the NZD/USD traded at 0.7231, up +0.92% in the last minutes of NA session, having posted a daily high at 0.7237 and low at 0.7157.

The NZD/USD pair finished the day on a high note breaking above 0.7200 round figure. Furthermore, risk-on sentiment served as catalysts to reduce long-dollar positions amid the Fed's rate hike cycle in 2017 and Trump's massive spending and promised tax cuts to boost the US economy. 

An empty NZ$ economic docket ahead of the Asian session provide little fuel to expect a significant rally. However, the palpable tension created by Trump's first actions may suffice to experience another session packed with short-sellers attacking the greenback. 

Historical data indicates, however, that the highest performance for the kiwi clocked at +1.60% (Jan.17) and the lowest at -1.26% (Jan.18)

Technical levels to watch

In terms of technical levels, upside barriers are aligned at 0.7366 (horizontal resistance) and above that at 0.7564 (200-DMA). While supports are aligned at 0.7075 (low Jan.15) and below that at 0.6944 (100-DMA).

On the medium-term view, the next critical resistance that kiwi buyers need to handle at 0.7246 (short-term 61.8% Fib) if prices close and open above this level, then the immediate resistance to target is located at 0.7300-10 region. To the downside, to attract dollar bulls, the pair need an open and close below 0.7215 (long-term 38.2% Fib) that would suggest a move lower towards 0.7172 (short-term 50.0% Fib). 

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