NZD/USD: back below the 20 4hr sma a turning point?

Currently, NZD/USD is trading at 0.7063, up 0.05% on the day, having posted a daily high at 0.7067 and low at 0.7059.

Wall Street closes higher on robust data

NZD/USD has started to turn south and test the previous resistance of the 24th highs. The dollar has made a come back with positive data lifting spirits on Wall Street and transpiring into risk-on markets. A lift in yields encouraged demand for stocks, despite a turn in oil. WTI dropped below the $48 handle and the DXY scored a bid through the 97 handle and left commodity currencies vulnerable. Analysts at Westpac explained that the positive momentum is waning, and it’s probably capped at 0.7120 ahead of the key US payrolls data tonight.

Forex today: dollar catches a bid, Trump dumps Paris accord, nonfarm payrolls next catalyst

NZD/USD 1-3 month:  

The analysts at Westpac argued that 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

The price has, and significantly, broken below the levelling 20 4hr sma at 0.7076 today. This had been supporting the ascending channel since the 22nd May. The next major supports are 0.7040, 0.7000, 0.6980 and the 50 daily sma at 0.6959. Resistance is located at 0.7120 the high ahead of and 0.7148.