NZDUSD testing strong support

08/03/2021

It looks like the recent run in the NZDUSD could be over as the greenback is starting to dominate broadly, supported by the rising US yields. 

On Monday, the Kiwi was down 0.3% during the US session, trading at around 0.7140.

The first critical support is spotted near 0.71, and it has been tested a couple of times. As long as the Kiwi trades above this level, the medium-term outlook still appears bullish. 

However, if the pair drops below that level, larger stop-losses might be triggered, most likely dragging the Kiwi further lower. The next target for bears would be at 0.70.

Alternatively, if the mentioned support is defended, we could see a bounce toward 0/72, while the main resistance could be found at previous highs of 0.7315.

Should the US yields continue to climb higher, the greenback might strengthen. However, following the sharp rise in yields, we might see some consolidation, which should benefit the Kiwi. 
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