NZD/USD: muted on trade balance, technicals suggest 0.6600

Currently, NZD/USD is trading at 0.7002, up 0.08% on the day, having posted a daily high at 0.7011 and low at 0.6995.

NZD/USD was muted on the New Zealand trade balance for October that arrived as -846m vs. expected -971m.However, analysts at Westpac suggested that the bird is Vulnerable to falling further below 0.6970 for the session ahead.

The analysts offered NZD/USD in a 1-3 month:  "The US dollar has had an impressive rise since the US election and has potential to rise further, not least because the Fed will probably hike in December. Against that, the NZ economy is strong and dairy prices have risen. Overall we are left with a bearish outlook for NZD/USD, targeting sub-0.70. Technicals suggest as low as 0.66 could be seen, courtesy of the head-and-shoulders break below 0.7060."

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NZD/USD levels

Spot is presently trading at 0.7005, and next resistance can be seen at 0.7011 (Daily High), 0.7014 (Yesterday's High), 0.7028 (Daily Classic PP), 0.7033 (Daily 200 SMA) and 0.7033 (Hourly 100 SMA). Next support to the downside can be found at 0.7001 (Hourly 20 EMA), 0.7000 (Daily Open), 0.7000 (Monthly Low), 0.7000 (Weekly Low) and 0.6995 (Daily Low).