NZD/USD extends bullish break through 200-DMA barrier

   •  DXY tumbles to 3-month lows near 92.00 mark. 
   •  Weaker US bond yields lend additional support.
   •  Gains traction further beyond 0.7100 handle. 

The NZD/USD pair continued gaining positive traction through the mid-European session and was now seen building on its momentum beyond the 0.7100 handle.

A fresh wave of greenback selling pressure since the early European session, with the key US Dollar Index tumbling to 3-month lows near the 92.00 handle remained supportive of the pair's strong bid tone for the seventh consecutive session.

Adding to this, a softer tone around the US Treasury bond yields provided an additional boost to higher-yielding currencies - like the Kiwi and further collaborated to the pair's run-up to its highest level since October 19.

The pair's strong momentum could also be attributed to a follow-through technical buying, especially after yesterday's close above 100-day SMA and a subsequent break through the very important 200-day SMA barrier near the 0.7100 handle.

In absence of any market moving economic releases from the US, the pair remains on track to post its third straight week of gains and the highest weekly close in 10-weeks. 

Technical levels to watch

From current levels, immediate resistance is now pegged near the 0.7145-50 region, above which the momentum could get extended towards reclaiming the 0.7200 handle.

On the flip side, the 0.7100 handle (200-day SMA) now seems to protect the immediate downside, which is followed by 100-day SMA support near the 0.7070 region and a strong horizontal support near the 0.7025 level.