NZD/USD attacking 0.72 key handle in a recovery above 200 dma

Currently, NZD/USD is trading at 0.7193, up 0.10% on the day, having posted a daily high at 0.7204 and low at 0.7183.

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NZD/USD remains in a bullish phase above the 200 dma at 0.7110 and is attacking the 0.72 handle to the upside, driven in a demand environment at the start of the week and in a continuation of 2016's bull trend that has met highs of 0.7480 this year. Oil has been a prop to the commodity bloc while the upside here is a minor recovery of the sell-off that ensued at aforementioned 2016 highs down to 0.6970 at the end of November's business.

Oil testing the downside, challenging the bullish gap

Analysts at Westpac noted that the bird retains slight positive momentum which threatens a break above 0.7200 the US dollar looking tired and offered a longer-term outlook below.

NZD/USD 1-3 month:

"The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead, not least because the Fed will probably hike in December. Against that, the NZ economy is strong and dairy prices have risen. Overall we are left with a bearish outlook for NZD/USD, targeting sub-0.70, - explained analysts at Westpac

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NZD/USD levels

Current price is 0.7193, with resistance ahead at 0.7200 (Daily 100 SMA), 0.7204 (Daily High), 0.7209 (Yesterday's High), 0.7217 (Daily Classic R2) and 0.7219 (Weekly Classic R1). Next support to the downside can be found at 0.7186 (Daily Open), 0.7186 (Monthly High), 0.7186 (Weekly High), 0.7183 (Daily Low) and 0.7179 (Daily Classic R1).