NZD/USD fails to hold to gains and breaks below 0.7140

NZD/USD was unable to hold to gains and broke below the key short-term support located around 0.7140. The recovery from last week lows was short-lived and the kiwi remains under pressure. 

The pair climbed from 0.7140 and peaked at 0.7176 but then turned to the downside amid a rally of the US dollar in the market, particularly against commodity currencies. NZD/USD broke below 0.7140 and tumbled to 0.7123, the lowest level in a week. 

It was trading at 0.7130, 30 pips under Friday’s closing price and 130 pips below last week highs, holding a clear bearish tone. 

Levels to watch 

To the downside, immediate support might be located at 0.7120/25 (daily low), 0.7100 (psychological), 0.7075 (Oct 17 low). On the opposite direction, resistance could be seen at 0.7140/45 (Oct 21 low), 0.7157  (daily high) and 0.7200 (Oct 07 high).