NZD/USD: stable between support and resistance breakout points on 0.70 handle

Currently, NZD/USD is trading at 0.7018, down -0.07% on the day, having posted a daily high at 0.7025 and low at 0.7018.

NZD took a knock overnight in the US shift with the price of WTI plummeting close to $4.00 on the back of the OPEC announcements. It was a typical buy the rumour sell the fact trade which escalated to a freefall in the price when stops were triggered in long squeeze. The commodity bloc took the brunt of the market today and the Kiwi starts out on the backfoot in Asia.  Analysts at Westpac explained that there is potential for further probing of the 0.7060 resistance area.

Forex today: OPEC was the focus sending WTI off a cliff by circa $4.00

NZD/USD 1-3 month: 

On a longer-term outlook, the Fed’s tightening cycle plus US fiscal expansion should eventually reassert upside pressure on US interest rates and the US dollar, pushing NZD/USD below 0.6800 by year end. "US factors should outweigh local factors which are mostly supportive."

NZD/USD levels

Immediate resistance is located at 0.7020 and remains at 100-day SMA near 0.7040-50 region where orders are placed. Beyond 0.7047 as being Tuesday's high opens 0.7088 and 0.7148 resistances. To the downside,  0.7000, 0.6980 and the 50 daily sma at 0.6935 are the key supports.