NZD/USD turns negative for eight straight session

The NZD/USD pair's tepid recovery above 0.7000 psychological mark sold into and the pair tuned lower for eight straight session to currently trade around 0.6985-90 band, just off session low.

The pair continues to witness intense selling pressure and on Thursday dropped to a 6-week low level on speculations of further interest rate-cut by RBNZ at its meeting on August 11. Adding to this, buoyant sentiment around the greenback has further aggravated the selling pressure surrounding the major. 

Following a drop to the lowest level since June 8, the pair found some temporary respite and managed to bounce off 0.6950 level as bears took some breather after the pair's sharp slide of over 350-pips from multi-month high touched last week. Nevertheless, the pair is still headed for second straight week of sharp declines and seems set to provide lowest weekly close since last week of May. 

Technical levels to watch

From current levels, multi-week low near 0.6950 might continue to provide some immediate support, below which the pair seems to immediately drop to test 100-day SMA support near 0.6910 region. A follow through selling pressure now seems to continue dragging the pair towards its next major support at the very important 200-day SMA near 0.6800-0.6780 region.

On the flip side, recovery momentum above session high resistance near 0.7020 region is likely to assist the pair towards 0.7055-60 horizontal resistance. Any further recovery beyond 0.7055-60 resistance now seems to be capped at an important support break-point, now turned strong resistance near 0.7100-20 area.