NZD/USD slips below 0.6700 mark, eyeing 200-DMA to extend support

Commodity currencies, including the NZD/USD pair, extended their slide on Monday as the US Dollar continued to get a boost from expectations of a Fed rate hike in June or July and from upward revision of the US Q1 GDP growth figure.

The pair on Friday decisively broke below 100-day SMA support and dropped to its lowest level since late March after US GDP growth for the first quarter of 2016 was revised upward to show a growth of 0.8% annualized rate as compared to 0.5% reported initially. 

On the first day of a fresh trading week, the pair extended its slide further below 0.6700 round figure mark to currently trade 0.6685, slightly off day's through level of 0.6675 amid low liquidity conditions and limited volatility on the back of holiday in the US and UK markets.

Even from technical perspective, the pair seems to have confirmed a near-term range break-out on the downside and a follow through selling pressure below the very important 200-day SMA would increase the prospects of a further down-slide in the near-term. 

Technical levels to watch

From current levels, bulls will attempt to defend 200-day SMA support near 0.6650 region, below which the pair could easily drop to mid-March daily closing lows support near 0.6600 round figure mark. Conversely, attempts of recovery might now confront immediate resistance near 0.6700 handle. Even if the pair manages to clear this immediate hurdle, any further up-move might now be capped at 100-day SMA support break-point, now turned immediate strong resistance, near 0.6725 region.