NZD/USD Holding Recovery Gains to 0.6700 but Remains Vulnerable
Extending its recovery from a two-month low level of 0.6675 touched earlier during Asian session, the NZD/USD pair continues to hold its neck above 0.6700 handle.
On Friday, the pair decisively broke through 100-day SMA support, which was held for almost 3-weeks, after the US Q1 GDP was revised higher and the Fed Chair Janet Yellen reiterated the possibilities of a Fed rate hike in June/July.
A follow through selling pressure pushed the pair further below 0.6700 handle on Monday but the dip below 0.6700 was bought into on broad weakness witnessed in the greenback.
From technical perspective, sustained weakness below 100-day SMA points deeper losses for the pair in the near-term.
Technical levels to watch
On the immediate upside, 100-day SMA support break-point near 0.6725 might now turn immediate resistance, above which the pair might extend its recovery towards 0.6760-65 horizontal resistance.
Meanwhile on the downside, weakness below 0.6675 could get extended towards the very important 200-day SMA region, currently near 0.6650, which if broke would pave way for further near-term depreciating move for the pair.