NZD/USD remains well offered below 100-DMA, hits fresh session low

The NZD/USD pair maintained it’s offered tone below 100-day SMA and has now dropped to a fresh session low level near 0.7130 region.

A broad based greenback strength, as measured by the overall US Dollar Index, amid increasing prospects of an eventual Fed rate-hike action by the end of 2016 following Friday's comments from Cleveland Fed President Loretta Mester, has been the key factor weighing on higher-yielding currencies - like Kiwi.

On Friday, the pair faded its disappointing NFP-led bullish spike and faced rejection at 0.7200 handle as market speculations of further monetary easing by RBNZ at its meeting in November continues to attract fresh supply on every attempted recovery. 

From technical perspective, the pair is sustaining its weakness below 100-day SMA and hence, a follow through selling pressure below Friday's swing low support would turn it vulnerable to continue sliding further in the near-term.

Technical levels to watch

Immediate downside support is pegged near 0.7110 level below which the pair is likely to accelerate the slide immediately towards 0.7090 before eventually dropping to an important horizontal support near 0.7060 area.

On the upside, any recovery back above 50-day SMA resistance near 0.7150 region might now confront resistance near 0.7175-80 region (session high), which if cleared has the potential to lift the pair beyond 0.7200 handle towards 0.7220 strong horizontal resistance.