“¢ Fails to capitalize on early up-move, despite the ongoing USD retracement.
“¢ A goodish pickup in the US bond yields seemed to prompt some fresh selling.
The NZD/USD pair surrendered a major part of its early gains to over one-week tops and has now moved on the brink of drifting into negative territory.
The pair built on last week’s recovery move from 5-month lows but failed to capitalize on the early up-move and ran into some resistance near the 0.6975 region.
A combination of supportive factors, namely the ongoing US Dollar profit taking slide and the prevalent positive trading sentiment around commodity space, did little to provide any fresh bullish impetus.
Meanwhile, a goodish pickup in the US Treasury bond yields now seemed to have prompted some fresh selling around higher-yielding currencies – like the Kiwi and is turning out to be an exclusive driver of the pair’s slide since the early European session.
It would now be interesting to see if bulls are able to regain their dominant position or the retracement slide points to a resumption of the pair’s prior depreciating slide amid empty US economic docket.
Technical levels to watch
Any subsequent retracement is likely to find support near the 0.6910-0.6900 region, below which the pair could head back towards YTD lows support near the 0.6860-50 area.
On the flip side, the 0.6975-80 region now seems to have emerged as an immediate resistance, which if cleared should assist the pair to build on its momentum back above the key 0.70 psychological mark.
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