NZD/USD attempting to build on to its recovery beyond 0.6750

The NZD/USD pair maintained its bid tone and is now attempting to build on to its move above the mid-point of 0.6700-0.6800 handle.

The pair extended Tuesday's late recovery from multi-month low level of 0.6706 after New-Zealand's trade balance data for April surprised massively on the upside by printing a surplus of 292m vs consensus estimates of 40m.

The surprisingly strong trade data helped to pair to defend 100-day SMA support near 0.6720-0.6700 mark, suggesting a possible near-term base formation around 0.6700 handle. Hence, the 0.6700 handle now becomes important pivot point in determining the pair's near-term direction.

Technical levels to watch

On the immediate upside, the pair need to clear 0.6765-70 barrier, which if conquered should assist the pair to extend its recovery beyond 0.6800 handle, towards its next major resistance around 50-day SMA near 0.6840-45 region.

Conversely, weakness back below 0.6720-0.6700 important support might now accelerate the fall immediately towards 0.6660-50 intermediate support, which could further get extended towards 0.6610-0.6600 round figure mark.