NZD/USD: Bulls back in control, re-takes 0.7100

After a brief stint to the downside, the NZD bulls regained lost footing and jumped back on the bids last hours, now pushing NZD/USD back towards 0.71 handle.

NZD/USD: 20-DMA – A tough nut to crack

Currently, the NZD/USD pair advances +0.08% to trade near daily highs of 0.7086 reached at Tokyo-open. The Kiwi moved-off lows and now reverts to the familiar ranges seen during the openings, as the bulls find support stalled USD buying, as the buck extends its consolidation phase into early Europe.

The NZD/USD pair extends its short-covering rally into a third day today, as investors seek to lock-in gains after last week’s extensive sell-off ahead of the OPEC’s decision on output cut and  RBNZ Financial Stability Report (FSR) due out tomorrow. In the meantime, markets look forward to the US GDP report due later in the NA session today.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7100/05 (zero figure/ previous high), above which it could extend gains to 0.7149 (50-DMA) and from there to 0.7210 (100-DMA). To the downside immediate support might be located at 0.7050 (5-DMA) and from there to at 0.7000 (key support), below which 0.6949 (July low) would be tested.