NZD/USD: headed to 0.7110, the (27 Oct low), on pure momentum?

Currently, NZD/USD is trading at 0.7055, up 0.04% on the day, having posted a daily high at 0.7059 and low at 0.7051.

NZD/USD has consolidated at the midway point of the 0.70 handle and was a spike overnight in the US session on the back of US yields dropping heavily after the 10-year auction that saw an unusually strong bid while Trump's news conference did not do anything to support the dollar or the speculation of fiscal spending.

Economic wrap: Trump's news conference was combative and defensive - Westpac

Meanwhile, analysts at Westpac pointed out that the upward momentum persists in NZD/USD and suggested the next area for pause is 0.7110 (27 Oct low). "Trump's USD-disappointing press conference has caused long-USD positions to be pared."

NZD/USD 1-3 month:

The analysts see the bird lower to at least 0.6800. "The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed's assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar's trend. (21 Dec)."

NZD/USD levels

With spot trading at 0.7055, we can see next resistance ahead at 0.7059 (Daily High), 0.7082 (Daily 200 SMA), 0.7090 (Yesterday's High), 0.7091 (Daily Classic R2) and 0.7123 (Weekly Classic R2). Support below can be found at 0.7053 (Daily Open), 0.7051 (Daily Low), 0.7044 (Weekly Classic R1), 0.7042 (Daily Classic R1) and 0.7022 (Weekly High).