NZD/USD slides further below 0.7200 handle

The NZD/USD pair remained well offered and extended its slide further below 0.7200 handle to hit 6-day low level of 0.7140 before retracing few pips to currently trade around 0.7160-65 region.

The pair continues to witness selling pressure after RBNZ unexpectedly announced to issue a brief update on its economic assessment on Thursday 21, which added to the ongoing housing market crisis and has been interpreted as dovish by the markets. 

Earlier during the week, the pair rose above back above 0.7300 handle to its highest level since May 2015 but since then has been trending lower as market participants are now speculating for some sort of easing announcement by RBNZ. 

The pair's bearish momentum failed to get any respite from upbeat Chinese economic data, but has seems to have halted the slide for time being. Next in focus could be a slew of economic releases from the US, which if turns up to be better-than-expected could exert additional selling pressure on the major.

Technical levels to watch

Weakness below session lows support near 0.7140 now seems to open room for an immediate slide to a two-week lows support near 0.7080-75 region, which if broken might trigger a fresh leg of weakness for the pair that could further drag it, even below 0.7000 psychological mark support, towards testing 50-day SMA support near 0.6980 region.

On the flip side, in order to regain its near-term bullish momentum the pair needs to sustain its strength above 0.7200-15 immediate resistance, above which the momentum seems to get extended back towards an important resistance near 0.7300 handle.