NZD/USD: testing 20 1hr sma below 0.73 handle, end of bull run?

NZD/USD is consolidating the bid having been a top performer this week rallying from 0.7220 territory to meet supply overnight through the 0.73 handle at highs of 0.7324.

The dollar was, however, relatively stable overnight although US stocks yet again galloped to fresh highs and sentiment remains that the Fed may not be able to hike rates despite the recent and encouraging nonfarm payrolls data.

For the day ahead, assistant Governor McDermott speaks on the OCR process. "The speech will be published, although much of it is likely to be a repeat of the Bulletin on this topic released on Monday. There is unlikely to be any discussion on the current policy outlook," as analysts at Westpac noted. 

NZD/USD levels

They have a view on NZD/USD for the day also, with the erratic rally continuing, targeting 0.7400 next. "NZD/USD 1-3 month:  The uncertainty generated by Brexit plus further RBNZ easing should be negative for the NZD. We target 0.65." Meanwhile, the price is now testing the 20 sma on the 1hr sticks at 0.7295 and a break of 0.7280 opens the 50 sma at 0.7268 on the short time frames while the 200 sma on the same time frame is located at 0.7204. Only a break of recent highs could bring the 100 monthly sma in at 0.7462 as a reasonable target in the near term, corresponding with the 3rd March monthly high of 0.7466.