What drives NZD/USD is the revolving correlations to EUR/USD which in turn affect NZD/USD’s relationship to EUR/NZD. Its a common relationship because the only connection NZD/USD has to Amrican and European markets is through EUR/NZD. The same situation is found in AUD/USD to EUR/AUD. Currently NZD/USD is vastly oversold.
NZD/USD from current price at 0.6731, faces tough resistance above at 0.6764, 0.6771, 0.6829 and 0.6915. Below next comes 0.6717, 0.6691, and 0.6610. Nearest ranges are 0.6717 to 0.6764, 47 pip range. A break below at 0.6717, targets next 0.6691 yet inside a 26 pip range.
EUR/NZD Bottom for today is located at 1.6520. The ranges are wide from 1.6961 above to 1.6322 and 1.6254 below. The next significant break above is 1.6622. For the most part, EUR/NZD historically tracks the DXY well. A higher DXY sees a higher EUR/NZD. As ranges in EUR/NZD are always extremely wide, movements are terrific and move far and wide.
Brian Twomey, Inside the Currency Market, btwomey.com