NZD/USD plunges to fresh one-month low, now eying 200-DMA

The greenback continues to soar across the board, with the NZD/USD pair now dropping to the lowest level since Oct. 13.

Currently trading around mid-0.7000s, the pair traded weaker for the sixth straight session and has failed to benefit from Tuesday's release of GDT price index that rose further 4.5% following 11% surge at the previous auction. Moreover, the recent earthquakes in New-Zealand dented investor confidence and has failed to halt for the pair's ongoing downslide. 

Meanwhile, increasing bets that the Federal Reserve would eventually move towards raising interest rates in December is further driving flows away from higher-yielding currencies - like Kiwi.

Next on tap would be US economic data, featuring the release of PPI, industrial production and capacity utilization rate and would be looked upon for some immediate respite for the major. 

Technical levels to watch

Immediate support is pegged at 0.7035 (Oct. 13 low) below which the pair is likely to aim towards 200-day SMA support near 0.7020 region. A convincing break below 200-day SMA support would turn the pair vulnerable and open room for continuation of the pair's near-term downward trajectory. 

On the upside, recovery back above 0.7070 immediate resistance, leading to momentum beyond 0.7100 handle, is likely to trigger a short-covering bounce that could lift the pair immediately towards 0.7140 horizontal resistance.

To learn more about this topic, check our video analysis