Kiwi pivots around 0.7000 against the dollar to start the day

NZD/USD tracked lower overnight but continues to hug the key psychological level

The dollar was a little weaker post-FOMC and the pair made a run up to test near the day’s high at 0.7032 before falling back lower as the dollar stayed bid to close the day. The high yesterday coincided with the 61.8 retracement level, and the rejection there saw the pair tread lower thereafter.

Currently the pair is staying near the 0.7000 figure level looking for the next move. The low yesterday was at 0.6985, and it neared the 9 November low of 0.6980. That will be a minor support level to look out for in the near-term.

The bigger and key support level will be the 76.4/23.6 retracement level @ 0.6936. At the moment, near-term bias for the pair remains to the downside and if the pair can stay below 0.7000 it will provide further conviction for sellers to drive the pair to the next range of support levels near 0.6900.