NZD/USD: overdone through key resistance? Watch for break below 0.7180 on the wide

Currently, NZD/USD is trading at 0.7265, up 0.65% on the day, having posted a daily high at 0.7278 and low at 0.7209.

NZD/USD is slipping back off the highs as the dollar continues to be unwound. We moved into highly bullish territory albeit the move may have been somewhat overdone and  a slip now below 0.7180 could trigger a flush back to 0.7075-90 according to analysts at Westpac.

NZD/USD 1-3 month:  

The analysts at Westpac actually have a bearish view longer term and 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."

NZD/USD levels

Current price is 0.7266, with resistance ahead at 0.7270 (Daily Classic R2), 0.7278 (Daily High), 0.7307 (Weekly Classic R2), 0.7312 (Daily Classic R3) and 0.7387 (Weekly Classic R3). Next support to the downside can be found at 0.7245 (Daily Classic R1), 0.7236 (Weekly Classic R1), 0.7231 (Hourly 20 EMA), 0.7229 (Yesterday's High) and 0.7219 (Daily Open).