NZD/USD moves above 0.7 despite bearish MA cross

• Kiwi mildly bid, trades above 0.70.
• Ignores bearish pin bar and bearish 100-day MA & 200-day MA cross.
• The unwinding of NZD shorts behind the positive action.

The NZD/USD pair is back above 0.70 levels despite Friday's bearish pin bar candle and a bearish 100-day MA and 200-day MA crossover.

As of writing, the Kiwi is trading at 0.7010 levels. The pair rose to 0.7034 on Friday; the highest levels since Nov. 20, only to fall back to 0.6988 by NY closing. The decline from 0.7034 to sub 0.70 levels highlights the "sell on the rise" mentality.

So, it remains to be seen if the spot manages to latch on to the gains above 0.70 handle today. Reuters report says, "the NZD is benefitting from the unwinding of large shorts taken after NZ election".

Ahead in the day, the US tax reform optimism and the resulting rise in the treasury yields could cap the upside in the pair.

NZD/USD Technical Levels

A close above 0.7034 (Friday's high) would signal a continuation of the rally from the Dec. 8 low of 0.6822. The attention would then shift to 0.7104 (200-day MA) and 0.7131 (Aug. 31 low). On the downside, breach of support at 0.6979 (Friday's low) could yield a pullback to 0.6933 (50-day MA) and 0.6925 (10-day MA).