NZD/USD struggling to move back above 100-DMA

After a sharp reversal on Wednesday, the NZD/USD pair pushed higher and is now making a fresh attempt to move back above 100-day SMA.

Currently trading around 0.7140-35 band, off session peak level of 0.7152, a mild greenback retracement, following yesterday's pull-back, supported the bid tone surrounding the major. Today's release of Business NZ Manufacturing Index provided little impetus and the major remains at the mercy of the US Dollar dynamics, which seems to have regained some traction following Wednesday's upbeat release of US CPI print and hawkish comments from the Fed Chair Janet Yellen. 

The ECB monetary policy decision, followed by a press conference, on Thursday might trigger some movement in the greenback and eventually provide some impetus for the major. Later during NA session, US economic docket would be looked upon for some short-term trading opportunities ahead of the Fed Chair Janet Yellen's speech on "The Economic Outlook and the Conduct of Monetary Policy" and a slew of Chinese macro data, which stands to move commodity-linked currencies - like the Kiwi.

Technical levels to watch

On a sustained move back above 100-day SMA resistance near 0.7150 region is likely to accelerate the up-move towards 0.7185 horizontal resistance before the pair eventually moves back above 0.7200 handle to retest 5-week high resistance near 0.7220 region.

On the flip side, 0.7125-20 area now seems to protect immediate downside, which if broken is likely to extend the corrective slide towards 200-day SMA support near 0.7090 region. A follow through selling pressure below 200-day SMA has the potential to continue dragging the pair towards 50-day SMA support near 0.7055 region.