NZD/USD: marching up to the 0.72 handle, but dollar's broader trend remains intact

Currently, NZD/USD is trading at 0.7206, up 1.50% on the day, having posted a daily high at 0.7211 and low at 0.7096.

NZD/USD is making tracks on the bid, marching up to the 0.72 handle, extending the 2017 rally with the dollar being unwound with the Trump trade taken to the cleaners on the back of Trump's recent commentary in respect to the strength of the dollar and indeed when he criticised, as analysts at Westpac described, "a key-plank of the House Republicans’ corporate-tax plan - a border tax designed to boost exports and cut imports - calling it too complicated."

Analysts at Westpac noted that the NZD trades firmer with near term risks of a multi-day push toward the 0.7240 high of 14 December with support rising to 0.7470-80.

NZD/USD 1-3 month: 

The analysts at Westpac expect NZD/USD to 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."

NZD/USD levels

Current price is 0.7206, with resistance ahead at 0.7211 (Daily High), 0.7214 (Daily Classic R3), 0.7270 (Weekly Classic R2), 0.7393 (Weekly Classic R3) and 0.7450 (Annual High). Next support to the downside can be found at 0.7196 (Weekly Classic R1), 0.7181 (Daily Classic R2), 0.7165 (Hourly 20 EMA), 0.7149 (Yesterday's High) and 0.7146 (Daily 100 SMA).