NZD/USD: headed for a test of 0.7180 key level?

NZD/USD: new short-term low made.

NZD/USD: Powell keeps the dollar bull's hopes alive on 90 handle, DXY.

NZD/USD was taken down today on the strength in the US dollar during Powell's testimony that convinced markets that there will be aggressive rate hikes along the way based upon his optimism for the strength of the US economy recovering at a faster place than what had been first anticipated. 

Market wrap: Powell would raise his growth forecasts sends DXY well BID - Westpac

However, the rhetoric was only relative nor were there any specifics mentions that rates would be increased at a faster pace than the previous dot plot. Currently, NZD/USD is trading at 0.7234, up 0.03% on the day, having posted a daily high at 0.7238 and low at 0.7231.

Funda and political wrap: Powell sends dollar and rates higher, option interest capping majors prior advances

"The combination of a larger-than-expected trade deficit and perceived hawkishness from the new Fed Chair has sent the kiwi lower, which it was looking primed to do anyway, to be fair. The USD remains in the driver’s seat, but further tests of downside support look possible," explained analysts at ANZ. 

NZD/USD level

 NZD/USD is now below the 10 and 21-DSMAs while RSIs are biased down. There has been a new short-term low set and the next key support is 0.7180 as being the start of the bullish rally back on the 8th Feb while the wide resistance is located at 0.7420. The key topside resistance line is made up from 0.7436 (Jan 23rd high) 0.7419 (30th Jan high), and 0.7379 (13th Feb high).  The next key resistance levels, should the 0.7310 support level hold, will be the 0.7435/40 triple top level ahead of 0.7557, 21st July 2017 high.