NZD/USD: testing below 200 dma, break of 0.71 vulnerable

Currently, NZD/USD is trading at 0.7118, up 0.29% on the day, having posted a daily high at 0.7123 and low at 0.7095.

NZD/USD is testing the 200 dma at 0.7082 while the earthquakes have disrupted business as usual. "New Zealand South Island was hit by a 7.5 earthquake overnight, two fatalities and damaged buildings.  While Christchurch was spared, most of the impact was felt beyond the epicentre, with most of Wellington out today.  Bond markets didn’t react, with nothing idiosyncratic, 2yr swap unchanged on day, 2x10s swaps +5 to 100, while NZD fell 0.42% to a one-month low," explained analysts at TD securities. 

NZ data, NZ Retail Sales q/q and Core Retail Sales q/q, that was scheduled for today has been postponed. 

NZD/USD 1 day from analysts at Westpac: "Momentum is negative. Any break below 0.7060 (H&S neckline) will signal a much larger fall during the weeks ahead."

NZD/USD levels

"NZD/USD 1-3 month:  The US dollar has had an impressive rise since the US election and has potential to rise further, not least because the Fed will probably hike in December. Against that, the economy is strong and dairy prices have rise. We target 0.70," added the analysts at Westpac.

Current price is 0.7120, with resistance ahead at 0.7123 (Daily High), 0.7144 (Yesterday's High), 0.7155 (Daily Classic PP), 0.7200 (Daily Classic R1) and 0.7211 (Daily 100 SMA). Next support to the downside can be found at 0.7102 (Hourly 20 EMA), 0.7099 (Daily Open), 0.7099 (Weekly Low), 0.7095 (Daily Low) and 0.7086 (Monthly Low).