NZD/USD an over-crowded long, still scope for 0.7374?

Currently, NZD/USD is trading at 0.7292, down -0.06% on the day, having posted a daily high at 0.7306 and low at 0.7293.

NZD/USD's reversal is stalling at 0.7301 as we await the Asian session to kick off with some key Chinese data that could spur some life into the bird. NZD/USD has been in a choppy consolidation between 0.7343 and 0.7253 this week, quite directionless with a bullish bias within the broader bullish trend.  However, it has been struggling and a potentially overcrowded long position having been a decisive bull run from 0.6816 that started back in mid-May. 

Key European and US data reviewed - ANZ

The US dollar has been pushed and pulled around the Fed and mixed US data of late. "But attention is on the current dip in US inflation and the weaker Q1 price index (1.9% vs 2.2%) in the GDP data will reinforce that. Initial claims at 224k were pretty much as expected and show the labour market remains strong," explained analysts at ANZ.

NZD/USD levels

NZD/USD managed a new high this week 0.7344, but on a continuation of the bid, there is scope for 0.7374 being the high for 2017. To the downside, 0.7250 area guards 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.