NZD/USD clocks three-week high

NZD/USD clocked a three-week high of 0.7047 on broad based USD selling in the Asian session.

Nears 50% fib retracement

At the time of writing, the spot was trading just a few pips short of 0.7050 (50% of 0.7239-0.6862) levels. Speaking of technical patterns, the daily chart also shows a ‘death cross’ is about to happen. ‘Death cross’ is a bearish 50-DMA and 200-DMA cross over.

Ahead in the day, the spot remains at the mercy of the action in the treasury yields.

NZD/USD Technical Levels

A break above 0.7050 (50% of 0.7239-0.6862) would open the door to 0.7080 (50-DMA + 200-DMA), above which the spot may test offers around 0.71 handle. On the lower side, failure to hold above 0.70 handle could yield a sell-off to 0.6971 (Nov 24 low) and 0.6951 (23.6% of 0.7239-0.6862).