NZD/USD: downside plays out on RBNZ expectations and Brexit

NZD/USD is currently on the offer, but has located support at the 100 sma on the 4hr chart at 0.7173.

The theme here is that the Kiwi is under pressure on the back of the RBNZ’s surprising addition of a July economic assessment which analysts at Westpac have explained raises the chances of an August cut and dampened the NZD. "We see support around 0.7150."

There three month outlook is based on the uncertainty generated by Brexit plus further RBNZ easing should be negative for the NZD. "We target 0.67."

NZD/USD levels

With support at the 100 sma on the 4hr chart at 0.7173, and taking in account of the 071.50 level, the next downside support is located at 0.7080/90 and in the vicinity of the 200 sma on the 4hr. That breaks the ascending support line from late June business and could lead to a sell-off3rd June highs at 0.6955. On the upside, 0.7320/80 could be last stop before psychological 0.7500 level.