NZD/USD headed back to 0.7170 yearly high

Haresh Menghani FXStreet

The NZD/USD pair maintained its strong bid tone and is now headed back towards a 12-month high of 0.7169 touched on Tuesday.

On Tuesday, the pair reversed after hitting its highest level since June 2015 as some US Dollar buying interest at lower level, possibly on the back of a short-covering, might have forced some short-term bullish traders to take some profit off the table.

Yesterday's Federal Reserve Chair Janet Yellen's testimony did little to further boost the greenback, which assisted the NZD/USD pair to resume its bullish momentum on Wednesday.

Investors, however, remain worried over the final outcome of Thursday's critical Brexit vote that could have lasting effect on high-yielding currencies - like the New-Zealand Dollar.

Technical levels to watch

On a sustained move above 0.7165-70 immediate resistance, the pair seems to easily surpass 0.7200 handle and dart towards testing June 2015 highs resistance near 0.7230-35 area. On the flip side, session low near 0.7120 level now seems to protect immediate downside, below which a near-term corrective move might set-in and could drag the pair back towards 0.7050 before heading towards 0.7000 psychological mark support.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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