NZD/USD pair extended losses to trade below 50-DMA level of 0.7246 and currently trades around the monthly pivot level of 0.7239 levels.
Approaching key support
The spot has clocked an Asian session low of 0.7229 and appears on track to test 0.72 handle; a level which has acted as a strong support since mid August. Also note that repeated rebound from 0.72 handle this month has been accompanied by falling tops.
The upward revision of the third quarter GDP yesterday ensured the pair suffered a weak closing after having suffered rejection at 0.73 handle. The focus today is on the US personal spending and income report release.
NZD/USD Technical Levels
Breach of 0.72 levels could force unwinding of long trades and expose support at 0.71 levels, given the level has acted as a strong support since mid August. A violation at 0.71 (zero figure) could yield 0.7054 (Apr 19 high). On the higher side, a move back above 50-DMA level of 0.7246 would open doors for a revisit to 0.73, above which major hurdle is seen at 0.7370 (Sep 23 high).
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