NZD/USD: Bulls conquer 0.68 handle, what next?

The overnight recovery from seven-month lows gained further traction in the Asian session, as risk sentiment recovers after oil prices stabilize in the positive territory.

NZD/USD sees a 40-pips rally

Currently, the NZD/USD pair trades 0.59% higher at 0.6796, hovering close to three-day highs posted at 0.6805 earlier in Asia. The Kiwi extends its bullish run into a second day today, staging a solid bounce from ahead of 0.67 handle, as the bulls completely ignore mixed Asian markets and subdued oil prices.

The rebound in the NZD/USD pair seen last Friday was triggered by expectations of cooling housing prices in New Zealand following a jump in the migrants entering the Kiwi nation. Meanwhile, nothing of note for the major today and hence, focus remains on the broader market sentiment for fresh incentives.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6825/46 (20 & 50-DMA), above which it could extend gains to 0.6900 (round number). To the downside immediate support might be located at 0.6765/63 (daily low/ 5-DMA) and from there to at 6700/0.6660 (round number/ 200-DMA).