NZD/USD rises toward 0.7200

NZD/USD pushed by a weak US dollar climbed to 0.7202, hitting the highest level since Thursday but it failed to hold above 0.7200 and pulled back. It was trading at 0.7180/85, almost 50 pips above Friday’s closing price. 

The kiwi overall remains steady in the market. In New Zealand there is a new Prime Minister: Bill English sworn in, after the surprise exit of John Key. An improvement in risk sentiment across markets helped commodity currencies. 

Technical outlook 

The pair continues to move with a bullish bias, supported by an uptrend line. It traded momentarily below but quickly rose on top of the mentioned line at the beginning of the week. 

NZD/USD bounced sharply after opening the week at 0.7112, the lowest in four days. Now the pair is looking at 0.7200/05, that is the first resistance. A consolidation on top could lead to a test of 0.7230 (Nov 11 high) and above here the next strong resistance could be seen around 0.7285 (upper limit of a bullish channel). 

On the opposite direction, support could be located at 0.7160 (Dec 6 high), followed by 0.7130 (uptrend line) and 0.7100 (psychological).