Four tries to break it in the past eight days

NZD/USD hasn't closed above the 55-day moving average since June 9 but it's sure trying hard. The pair crossed above the line four times since last Wednesday but has continually been rejected.

Four tries to break it in the past eight days

The US dollar ran into trouble again today on a strong Treasury auction but that move hasn't held up and NZD/USD is back below the 55-dma.

More important than that level is probably the 0.7105 and the three highs clocking right around that level.

On the fundamental side, I'm skeptical of NZD. It's been a darling of the FX market because of covid suppression but I think the world will have to move to mitigation strategy and that's going to be a painful transition in New Zealand, Australia and China.

New Zealand in particular is vulnerable to headlines above covid cases and at this point, I'm convinced that's only a matter of time.