NZD/USD slides further below 0.7300 handle

Haresh Menghani FXStreet

After giving-up majority of its strong gains on Tuesday, the NZD/USD pair traded with negative bias and is now extending its slide further below 0.7300 handle to currently trade near session low around 0.7275 region.

The pair's up-surge on Tuesday, led by hawkish comments from RBNZ Governor Wheeler, ran through fresh offers at higher levels after US data showed new home sales surged in July. Adding to this, Wednesday's release of higher-than-expected New-Zealand trade deficit data exerted further selling pressure.

However, market participants keenly await for the much anticipated speech from the Federal Reserve Chairwoman Janet Yellen at Jackson Hole Symposium on Friday in order to determine the pair's near-term direction.

In the meantime, today's US economic releases that include - existing home sales and house price index, will grab traders’ attention during NA trading session.

Technical levels to watch

From current levels, 0.7265 (Tuesday's low) seems to act as immediate support, which is closely followed by a strong support near 0.7250 region. A decisive weakness below 0.7250 could turn the pair vulnerable to immediately drop to weekly lows support near 0.7210 region before extending its corrective move in the near-term.

On the flip side, bullish momentum back above 0.7290-0.7300 immediate resistance might continue to confront strong supply around 0.7340-45 region. Only a decisive strength above this strong resistance might negate any near-term bearish bias and pave way for continuation of the pair's near-term upward trajectory.

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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