NZD/USD on the verge of breaking below 100-DMA

The NZD/USD pair remained well offered for the third straight session and is now on the verge of breaking through 100-day SMA support.

Currently trading near session low around 0.7140 level, spot maintained its bearish bias following the release of US weekly jobless claims that unexpectedly fell to 249K and helped the greenback to extend its recent gains led by increasing prospects of an imminent Fed rate-hike action by the end of this year. 

Moreover, the pair is also being weighed down by the latest disappointing release of GDT Price Index on Tuesday, while further RBNZ easing bets has kept any recovery attempts under check.

Focus now shifts to the keenly awaited US monthly jobs report, slated for release during early NA session on Friday, which if prints better-than-expected headline number would prove highly supportive for the US Dollar and open room for continuation of the pair's near-term downward trajectory.

Technical levels to watch

A follow through selling pressure below 0.7140 region (100-day SMA) is likely to accelerate the slide immediately towards 0.7110 (August 9 low) before the pair breaks below 0.7100 handle and head towards 0.7087 support (August 8 low).

On the upside, 0.7160 level now becomes immediate barrier, which if cleared could assist the pair through session high resistance near 0.7180 towards reclaiming 0.7200 round figure mark.