NZD/USD erases majority of Tuesday’s gains, inching towards 0.7200 mark

The NZD/USD pair remained well-offered and extended its sharp reversal to currently trade nearly 100-pips lower from session high level of 0.7322 touched during early Asian session. 

Following the release of better-than-expected employment data from New-Zealand, the pair jumped above 0.7300 handle but failed to build on to its gains and lost upside momentum. Amid broad based recovery in the greenback the pair erased majority of yesterday's strong gains and is now inching closer to 0.7200 round figure mark.

In absence of any economic releases from the US, market focus would remain on FOMC meeting minutes due later during US trading session. Hawkish Fed minutes would produce a knee-jerk bullish reaction for the US Dollar and add on to the selling pressure surrounding the NZD/USD major.

How strong has the move been?

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 39.21, down from the last hourly print at 42.08, with ADX at 23.85, down from its previous close at 29.54.

Daily RSI sits at 62.33, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.7247, up from the last close at 0.7202 and climbing. Over the past 20 days, the exponential average closing price is 0.7170 and trending higher.

Price levels to be considered

Next resistance can be seen at 0.7256 (Hourly 20 EMA), 0.7262 (Daily Classic PP), 0.7281 (Daily Open) and 0.7281 (Monthly High). Support below can be found at 0.7209 (Weekly Classic PP), 0.7202 (Hourly 200 SMA) and 0.7199 (Yesterday's Low).