NZD/USD extends gains to fresh highs in nearly a month, eyes key resistance levels

NZD/USD up 0.8% to 0.7072 currently

The pair is building on the more positive kiwi sentiment earlier, following a strong NZ labour market report here, with the dollar also seen mildly softer across the board as we get things going in European morning trade.

The push to 0.7072 sees the pair move to its highest since 6 July as buyers push past the 38.2 retracement level of the recent downswing @ 0.7047.

This sees buyers set their sights on the confluence of the key daily moving averages @ 0.7093-96. That is the key resistance region to watch next for the pair.

Keep below that and sellers are able to try and switch near-term sentiment back towards the downside. But break above and that will see buyers establish fresh momentum in chasing the next upside leg towards the May highs potentially.

So far, the dollar has been enduring a rough time post-Fed and the trend seems to be continuing as we move towards the US non-farm payrolls report later this week.

Technical Analysis

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