NZD/USD hits fresh monthly lows but holds above 0.7050

NZD/USD weekend after the beginning of the US session and fell to 0.7069, reaching a fresh 1-month low. Currently is trading at 0.7075, 50 pips below Friday’s closing price, headed toward the fourth daily decline in a row. 

Short-lived recovery

The pair rose earlier above 0.7100 but it failed to hold on top and after a brief moment it pulled back. Later it reached fresh lows but overall it remains with a bearish bias but the downside since the Asian session has been limited. 

On Tuesday, retails sales data from New Zealand and also in the US will be released but trader’s attention is likely to remain on potential Donald Trump potential policies and in NZ on the consequences of recent earthquakes. 

Technical levels 

To the upside, resistance level might be located at 0.7105 (American session high), 0.7135 (daily high) and 0.7170/75 (Nov 10 low). On the opposite direction, support might be seen at 0.7065/70 (daily low), 0.7030/35 (Oct 13 low) and 0.7010 Jul 19 and 27 low).