NZDUSD Soars as USD Falls Broadly

Interestingly, Goldman Sachs' analysts revised their forecasts for the Australian and Kiwi dollar to range-bound in their latest client note. They expect more hawkish Fed pricing and concerns about the risk backdrop to remain headwinds to AUD and NZD strength for now.

"We now see NZD/USD at $0.66, $0.66 & $0.67 in 3, 6- and 12-months (vs $0.71, $0.71 & $0.70 previously)." they added.

The 0.67 level seems to be the first significant resistance. If the Kiwi settles above it, the medium-term trend could change to bullish, with the first target at the 50-day moving average (the purple line) near 0.6750.

However, once the pair regains some bullish momentum, we might see a rally toward 0.6850, where previous swing/cycle highs are. 

Alternatively, the primary support remains at the current cycle lows near 0.6540. 

It looks like the USD has found its top, and we might see some downward pressure heading into the March FOMC decision.