NZD/USD falls to test weekly lows

NZD/USD broke below 0.7015 and accelerated to the downside, falling to test yesterday’s lows. So far it was able to hold on top, it bottomed at 0.6967 and then bounced to the upside, trimming daily losses.

Momentum still favors the US dollar amid risk aversion but USD rally lost strength during the last hour. The kiwi is the best performer among commodity currencies.

Currently NZD/USD trades at 0.6995, down 0.55% for the day and 65 pips below the level it closed last week when it climbed above 0.7100.

Despite moving away from 2016 highs, the pair still holds a bullish tone on a wider perspective; but a consolidation below 0.6870 (20 and 50-day moving average) could remove strength and favor further declines.

NZD/USD technical levels

In the short-term, resistance levels might be seen at 0.7010/15 (June 15 American session low) 0.7045 (20-hour moving average) and 0.7090 (daily high). On the opposite direction, support could be seen at 0.6960/65 (weekly low), 0.6945 (June 8 low) and 0.6890 (June 7 low).