NZD/USD supply slowing up before key 200 dma (0.7166), buy the dip?

NZD/USD is better offered among the warnings from the IMF to RBA and as such, ricochets can be felt in the bird along with the broader theme that is a resurgence n the greenback despite the strong move si the price of oil last week. 

AUD/USD: early Asian supply continues, offers stemming from IMF warnings to RBA?

WTI and the greenback are usually inverse and as a result of last week's rally, the US dollar index closed around 0.2% higher on the day, trading at a three-week high - that trend continues at the start of the week today, with the Yen down 50 pips already ahead of the Tokyo open. 

The bird has been a buy on dips this year and is supported on the basis that the NZ economy remains robust with the Dec-Feb rally’s correction still in play and analysts at Westpac suggested that the month ahead could see NZD/USD extending beyond 0.7500 (Sep high) if the US dollar continues to register disappointment in the Trump Administration’s policies. "Further ahead, though, the Fed’s tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD lower to 0.7000. Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend. (1 Feb)."

NZD/USD levels

NZD/USD offers have stopped short of a test of the 200 dma at 0.7165 although the bears are in control here until at least the same time ma on the hourly sticks up at 0.7244 where the supply broke the support last week. That area now becomes a key resistance and while trading below there, a break of the 200 dma opens up a 50% retracement possibility of the late Dec rally from 0.6860. 0.7120 and 27 Oct lows thus could be a strong level of support to the downside ahead of R3.