NZD/USD on brink of breaking below 0.6900 handle

The NZD/USD pair reversed early tepid recovery gains and has now move on the brink of breaking below 0.6900 handle, in response to resurgent greenback buying interest. 

Having facing strong rejection near 100-day SMA during mid-Dec., and subsequently breaking below the very important 200-day SMA, the pair now seems to have found some support around 0.6900 handle and was seen consolidating its recent sharp slide to 6-month low. 

The recovery, however, remains fragile and the pair even failed to benefit from Thursday's upbeat release of quarterly NZ GDP print. Moreover, the incoming US economic data have not been far worse than expected that could deteriorate the post-US presidential election well-establish US Dollar bullish trend and help the pair to register any meaningful recovery from multi-month lows. 

Next on tap would new home sales data and revised UoM consumer sentiment index from the US, which will be looked upon for short-term trading opportunities. 

Technical levels to watch

Immediate downside support is pegged at 0.6882 (Dec. 20 low) below which the pair is likely to accelerate the slide towards 0.6820 support area with some intermediate support near 0.6850 level. On the upside, 0.692-25 area seems to have emerged as immediate resistance, which if cleared seems to boost the pair towards 0.6960 resistance en-route 0.7000 psychological mark.