NZD/USD (current price: 0.6795)
The New Zealand Dollar was the strongest if the G10 currencies on Friday, as the pair rebounded from short-term oversold levels, despite the renewed decline in global dairy prices. The cross also started out today in a bullish fashion, continuing Friday short-term advance. NZD/USD still looks to be on its way to test the 200-day MA just below 0.665, even after the encouraging bounce off the 0.67 support level. The pair is now in a short-term downtrend after breaking below the prior trend channel two weeks ago, with strong resistance looming at 0.685.
Our assessment: NZD/USD looks bearish here, given the strong bullish trend in the USD, and with the momentum indicators still being in neutral territory, despite the steep decline so far in this month.
