NZD/USD drops 100 pips after hitting 1-month high

FXStreet (Córdoba) - NZD/USD failed to sustain gains and fell sharply after hitting a 1-month high amid broad USD weakness witnessed during the first hours of the week.

The New Zealand dollar reached its highest level since Dec 11 at 0.7864 before taking a downward turn and losing more than 100 pips. NZD/USD broke back below 0.7800 and accelerated to a low of 0.776, where the 20-day SMA offered support. At time of writing, the pair is trading at 0.7765, down 0.78% on the day.

NZD/USD levels to watch

In terms of technical levels, immediate supports are seen 0.7713 (Jan 7 low) and 0.7700 (psychological level). On the other hand, resistances could be found at 0.7864 (Jan 12 high) and 0.7870 (Dec 11 high) followed by 0.7890 (Dec 2 high).

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