NZD/USD slides further below 0.7300 handle

After running through fresh offers at session high at 0.7311, the NZD/USD pair extended its reversal to currently trade well below 0.7300 handle after the release of US economic data.

Higher-than-expected drop in US weekly jobless claims helped the greenback to recover some of its lost ground following Wednesday's downslide on the back of dovish FOMC meeting minutes. On Wednesday, the pair bounced-off sharply from 0.7200 handle as market participants were disappointed over lack of clarity on the timing of Fed's next rate-hike action. 

However, despite of a broadly weaker US Dollar, the pair seems to have lost its upside momentum and continued with its recent struggle in sustaining strength above 0.7300 handle. Hence, the pair seems more vulnerable if the greenback manages to attract any follow-through buying interest.

How strong has the move been?

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 42.03, down from the last hourly print at 53.18, with ADX at 19.56, down from its previous close at 28.96.

Daily RSI sits at 58.99, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.7264, up from the last close at 0.7213 and climbing. Over the past 20 days, the exponential average closing price is 0.7177 and trending higher.

Technical levels to watch

From current levels 0.7250-45 zone seems to act as immediate support, which if broken is likely to drag it back towards 0.7210-0.7200 strong support area. A decisive break below 0.7200 handle would negate possibilities of any further up-move and continue drifting lower initially towards 0.7165-60 support and eventually towards 0.7125-20 strong support.

On the flip side, bullish momentum back above 0.7275-80 zone seems to boost the pair beyond 0.7300 handle, towards retesting RBNZ-led swing high resistance near 0.7340 area. A follow through buying interest should pave way for continuation of the pair's near-term upward trajectory.